VEB: Russia’s inflation, key rate seen below 6% in 2016

MOSCOW, Sep 7 (PRIME) – Russian inflation will likely fall to below 6% in 2016, and the key rate can fall beyond 10% by the year’s end, Andrei Klepach, chief economist at Vnesheconombank (VEB), said at a forum on Wednesday.

“I see no conditions for a (key) rate increase, on the contrary, there are conditions for a reduction. It is hard to tell whether the central bank will do it or not, but I think that it will reduce the rate before the end of the year,” Klepach said.

The official also said that he forecasts a U.S. $51–55 per barrel oil price, or even higher, on average in 2017 because of an agreement between Russia and Saudi Arabia to support stability on the oil market.

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