Official: Russian cbank to keep strict policy to retain low CPI

MOSCOW, Aug 31 (PRIME) -- The Russian central bank plans to retain a moderately strict monetary policy for a while in order to maintain a low consumer price index (CPI), Igor Dmitriyev, director of the monetary and credit policy department, told PRIME in an interview published on Wednesday.

“This is necessary not only to make inflation continue to decrease but to consolidate it at a low level. It is only in conditions of constantly low prices and predictable rates that borrowings and investment can be planned confidently for a longer period, we strive to make this happen,” Dmitriyev said.

The official said that the current surge in Russian banks’ lending activity will not trigger acceleration of inflation.

“Both banks and borrowers needed time to adjust to live in conditions of a crisis. Now banks are already beginning to gradually soften the conditions for highly solvent borrowers. However, no greenhouse conditions in the economy are expected for either lenders or borrowers,” he said.

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