Central Bank repeats signal, balance of arguments for hiking and holding rate unchanged - dep governor

MOSCOW. Aug 29 (Interfax) - The balance of arguments on the movement of the key rate has not changed: the Central Bank of Russia's board of directors will in September assess the advisability of raising it at its upcoming meetings, CBR Deputy Governor Alexei Zabotkin said at a press conference on Thursday.

"The transition to the next meeting: the board of directors will be assessing the advisability of further key rate increase at upcoming meetings. This means a rate increase at the next meeting is not inevitable, as you know - it will depend on incoming data," he said.

"The overall balance of arguments for an increase and for holding the rate has seemingly not changed since [the last rate meeting on] July 26. On the one hand, we have approximately the same dynamics of price growth and some increase in inflation expectations. On the other hand, current data enables us to talk about a certain slowdown in demand and lending growth. We will still receive a lot of new data before September 13," Zabotkin said.

He said that with the current wording of the signal it was too soon to talk about the increment of a potential rate increase.

"Advisability does not imply change, so in these conditions, it is probably premature to talk about the spread in potential rate levels if the scales tip toward the need for an additional increase," he said.

The Central Bank hiked the key rate 200 basis points to 18% per annum on July 26.