Central bank says very concerned about inflation

MOSCOW, Dec 2 (PRIME) -- The central bank is very concerned about Russia’s inflation and inflation expectations in 'Russia, Chairwoman Elvira Nabiullina said on Thursday at forum Reuters Next.

"We are very concerned about the level of inflation and inflation expectations in Russia – they have returned to the maximum since the second half of 2016," the official said.

Nabiullina added that the situation is not as dramatic as in 2014, and the bank is ready to take steps to return inflation to 4%.

The central bank is waiting for November inflation figures, after which it can raise the key rate by up to 1 percentage point, she said. "We believe that we will be closer to the upper bracket of our base scenario," the official said.

The bank can start to reduce the key rate before the time indicated in the base forecast if disinflation factors start to prevail, but still expects that the key rate will return to a neutral range of 5–6% in 2023.

Nabiullina also said that the central bank is ready for a stricter U.S. monetary policy. The authority prefers more cautious policies because the U.S. changes can lead to a capital outflow from the developing markets.

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