2 Feb 2011 10:54

Central Bank sees potential for interest rate increase in H1

MOSCOW. Feb 2 (Interfax) - The Central Bank of Russia sees the potential for an increase in interest rates in the first half of 2011, Central Bank First Deputy Chairman Alexei Ulyukayev said at a press conference on Tuesday.

"There is potential for a rate hike," he said, adding that the Central Bank takes current inflationary risks seriously and will use every instrument at its disposal, including interest rate increases and reserve requirements.

"Going forward we will use one or the other of those tools," Ulyukayev said.

"We take the inflationary risks seriously. They materialized at the end of last year-early this year. We are ready to use every tool available," he said.