Russian consumer price inflation has slowed down to 6% and it will slow down further by the end of this year, according to the Russian central bank Governor Elvira Nabiullina.
“The Bank of Russia has been conducting a moderately strict monetary policy in the past two years which is necessary to lower inflation … Inflation has fallen significantly, the growth rate of consumer prices has slowed down in annual terms to 6 percent,” she said during her talk at the Russia’s State Duma on Friday.
Nabiullina also pointed out that rouble volatility has decreased, and that the banking system is stable. She said she saw Russia’s potential economic growth at less than 1.5-2%.
“The banking system overall is stable, the profit growth of banks this year is fourfold as compared to last year, which was rather difficult for the banking system,” she said.
The Russian central bank does not expect to lower it’s key rate earlier that the first or second quarters of 2017, according to the bank’s Governor.
“Our credit policies will be moderately severe over years to come. The key rate is 10% and the next lowering is likely to expect not earlier than the first or second quarter of the next year,” Nabiullina said.
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