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Russia’s Central Bank to stabilize inflation at 8-10% in 2015 — official

The major fall of oil prices and the ruble is over, Central Bank First Deputy Chief Kseniya Yudayeva says

MOSCOW, January 14. /TASS/. Russia’s Central Bank intends to stabilize inflation at 8-10% in 2015, Central Bank First Deputy Chief Kseniya Yudayeva said on Wednesday.

Adverse factors, including Russia’s ban on foods imports from Europe, the United States and some other countries in response to western sanctions and the ruble’s devaluation have pushed the country into the high inflation zone, Yudayeva told the annual Gaidar economic forum in Moscow.

“Now it is important to curb the growth of inflationary expectations and stabilize inflation at lower levels, less than 10% and, I would say, 8% this year,” Yudayeva said.

Low inflation should become a nominal “anchor” in the Russian economy, Yudayeva said.

“In principle, low inflation should become a nominal anchor,” she said, adding the economy now needed such an anchor. “This is the focus of our policy and we’re creating conditions for inflation to be stable,” she said.

The major fall of oil prices and the ruble is over, she said.

“It is understandable that the major fall has occurred and the same apparently relates to our exchange rate. The basic dynamics are over and soon the exchange rate will stabilize in the first quarter or early in the second quarter, after which the ruble will move to a more equilibrium state,” Yudayeva said.