Russian Central Bank expects inflation to be on target by end 2013
NOVO-OGAREVO. July 24 (Interfax) - The Central Bank of Russia expects inflation to be on target by the end of 2013.
"Inflation is still just above our target band, but we're hoping to be inside the 5%-6% band by the end of the year," Central Bank head Elvira Nabiullina said at a meeting with Russian President Vladimir Putin.
Nabiullina's wording differs from what the Central Bank has said in the past about expecting inflation to return to the target band during the second half of 2013, without specifying in which month or even quarter this might take place.
"A lot will depend on the harvest, on food prices, but on the whole we expect we will cope with the task of lowering inflation," Nabiullina said.
Nabiullina, whose recent appointment as Central Bank head was seen by many analysts as a signal for monetary easing in a bid to stimulate a stagnating economy, reaffirmed that the inflationary target was the Central Bank's priority.
"Monetary policy has to correspond to the situation that is emerging in our economy. And of course the key task here is to continue the policy of lowering inflation," Nabiullina said.
"We aim to lower inflation further next year also, and here we expect the decision to curb natural monopoly tariff growth will play a positive role," she said.
Inflation in Russia was 6.5% in annual terms as of July 22.
