Russia could have 5%-6% inflation in 2013 - CB
MOSCOW. Oct 3 (Interfax) - The Central Bank of Russia is targeting inflation to slow to 5%-6% in 2013 and 4%-5% in 2014-2015, the CBR said in its draft monetary policy, which has been submitted to the State Duma.
The draft says inflation could be a little over 6% in 2012, due mainly to accelerated food price growth.
Inflation was 6.1% in 2011.
The Central Bank aims to complete the transition to inflationary targeting by 2015. It will abandon the use of operating guidelines for exchange-rate policy as a floating rate is achieved. "Regular currency interventions to influence the exchange rate will cease," the draft says.
Central Bank First Deputy Chairman Alexei Ulyukayev said on October 2 that while the switch to inflationary targeting should be achieved by 2015, the CBR would retain the right to conduct interventions on the currency market not to control the exchange rate but smooth out excess volatility.
"We always say publicly that we are not undertaking any obligations to abandon interventions on the domestic currency market. We'll not be conducting them to protect the exchange but to dampen excess volatility," he said.
The scale of those interventions will be lower even than in the current situation, when the CBR enters the market infrequently and with small amounts, he said.