Russia's current exchange rate balanced, might continue - Siluanov

MOSCOW. Dec 3 (Interfax) - The weakening of the ruble that many expected might happen if monetary policy is eased, but the current exchange rate is fairly balanced and it could stay at this level in future, Finance Minister Anton Siluanov said.

"The strong ruble depends in large part on interest rates. If monetary policy is eased, accordingly, there will also be more possibility to finance purchases of imported goods. If this happens then, accordingly, [there will be] pressure on the ruble in terms of its weakening," Siluanov said in an interview with RBC-TV.

"Many talk about the weakening of the ruble, although we actually believe the range that has emerged recently for the ruble's exchange rate could also continue to future periods, because it's more or less balanced, based on today's balance of payments," he said.

"Therefore, we believe that we need to learn to live and work with the current exchange rate proportions," Siluanov said.

Asked about how the decision to hike the value-added tax to 22% will affect prices, he recalled there was an estimate made that it would contribute about 1 percentage point. "I think it might even be less," Siluanov said.

He also said that the Russian economy might grow by less than 1% this year. The Economic Development Ministry's and Central Bank's growth forecasts are, respectively, 1% and 0.5-1%, while the November consensus forecast of analysts polled by Interfax is 0.9%.

"The president said that, yes, indeed, we now expect lower than 1% economic growth for this year. But this is planned, expected. We went for ensuring sustainable economic growth. Not by pumping up, we should see a trend of economic growth, which, in fact, we now believe will be the case in the coming three years," Siluanov said.