Long period of tight monetary conditions required to return inflation to target - Nabiullina

MOSCOW. Dec 20 (Interfax) - The measures that the Central Bank of Russia has taken should ensure a slowdown in inflation in the coming quarters, though a long period of tight monetary conditions is still required to return inflation to the target, Central Bank Governor Elvira Nabiullina said.

"Tight monetary conditions have formed in the economy that should ensure a slowdown in inflation in the coming quarters. Since the October meeting, monetary conditions have tightened even more than was implied by the change in the key rate," Nabiullina said at a press conference.

Nabiullina said that the Central Bank needs time to assess the sustainability of the slowdown in lending. The regulator will assess the advisability of hiking the key rate in February next year.

Nabiullina also warned that a long period of tight monetary conditions is still required owing to the deviation of the inflation trajectory from the Central Bank's target.

"We will need some time to assess how steady this deceleration in lending is and how the economy is adjusting to the new conditions. Therefore, we are taking a pause in raising the key rate. We will assess the need for a further key rate increase at our upcoming meeting. I would like to stress that due to the considerable deviation of inflation from the target monetary conditions should nonetheless remain tight for a long period in order to secure bringing inflation back to 4%," she said.