Balance of risks in medium term has shifted even more toward pro-inflationary - Russian Central Bank

MOSCOW. June 7 (Interfax) - The balance of risks for inflation in the medium term has shifted even more toward pro-inflationary risks, the Central Bank of Russia said in a press release following the meeting of the regulator's board of directors.

The main pro-inflationary risks are associated with changes in the terms and conditions of foreign trade, including under pressure from geopolitical tensions, with continuing expectations of high inflation and Russia's economy deviating upward from the trajectory of balanced growth. Retaining large-scale government preferential programs could impede returning to more moderate rates of growth in lending.

Disinflationary risks are primarily associated with the faster slowdown in growth in domestic demand than anticipated in the baseline scenario.