Central Bank of Russia to exercise caution in rate cuts, may pause between moves, hike not ruled out

MOSCOW. June 6 (Interfax) - The Central Bank of Russia will adopt a cautious approach to further key rate reductions, potentially pausing between adjustments, with a rate hike not excluded should inflation fail to decline sustainably, Central Bank Governor Elvira Nabiullina said.

"Given that risks remain skewed towards inflation, our rate cut approach requires greater caution. It may involve pauses between moves. Moreover, should inflation stop declining sustainably - or worse, begin rising - a rate increase cannot be ruled out," she said.

"To sustain disinflation, we must maintain tight monetary conditions. This remains possible even during rate cuts if inflation and inflation expectations decline simultaneously. Our future decisions will aim to achieve the 4% inflation target by next year," she said.