Russia’s Central Bank raises inflation forecast from 8% to 10-11%
Russia’s Central Bank has officially increased its annual inflation forecast from 8% to 10-11%, the first deputy chairman said on Tuesday.
“Annual inflation will most likely reach double figures this year, totaling between 10% and 11%,” Alexei Ulyukayev told an international investment forum in Moscow. Ulyukayev also said the Central Bank would have to launch an inflation targeting policy in the short term rather than in the mid-term as previously planned. Due to the Russian banking sector’s current liquidity crunch, the Central Bank will switch from its exchange rate policy to a policy of interest rate regulation to give it more leverage over inflation, Ulyukayev said. The deputy chairman also said the accelerated inflation rate was due both to external and internal factors, including a sharp rise in world food and energy prices. Inflation in Russia stood at 9% in 2006. (rian.ru)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.