Deputy Chairman of the Russian Central Bank (CB) Aleksey Ulyukaev attends a press conference devoted to introduction of convertibility of Russian ruble in 2007. The conference was held in the Russian Central Bank.
Photo: Vasily Shaposhnikov
| Other Photos |
 |
|
 |
Central Bank Undertakes Inflation
First Vice Chairman of the Central Bank of Russia Alexei Ulyukaev announced yesterday that in the course of 3-4 years the Bank will switch to inflation targeting, giving up the regulation of the nominal currency rate. Experts warn the Bank against taking hasty measures, and say that the demand for currency is still not stable enough.
Russia’s Central Bank is now considering the concept of transition to inflation targeting. It plans to work out the corresponding macroeconomic patterns, to adopt a joint legal act with the government for defining which index should be targeted, the terms of targeting, and the admissible inflation range.
That is, in 3-4 years the Bank is ready to give up the regulation of the nominal rate of ruble. The ruble remains the chief instrument of Russia’s monetary policy. The Bank intends to begin regulating the money stock by means of rates and refinancing of banks, completely undertaking the responsibility for keeping inflation within the pre-defined range.
Experts say that the pressure for making ruble more expensive will be continued, while the demand for currency in Russia is not stable yet. They suggest switching to inflation targeting very slowly, if at all, and warn against strengthening the ruble drastically.
www.kommersant.com
All the Article in Russian as of Mar. 01, 2007
|
|
|
