The effect of exchange rate changes on the price increase is almost exhausted, said the first Deputy head of the Bank of Russia Sergey Shvetsov. In the future inflation will be associated with internal factors that are currently favorable.
SHANGHAI, 6 Nov. Zhanna Manukyan. The Bank of Russia expects the ruble to weaken in the medium term, said Friday first Deputy head of the Central Bank Sergey Shvetsov, speaking at a joint forum of the Moscow and Shanghai stock exchange.
“If we look at the source of inflation, the main source is the pass-through effect from exchange rate changes. But this single factor. Its effect on the increase of prices is almost exhausted. The balance of payments suggests that we do not see a further weakening of the ruble in the medium term. This means that this factor will cease to operate and inflation will be associated largely with domestic factors for inflation today is extremely favorable,” — said Shvetsov.
He also noted that inflation slows towards the middle of next year inflation will reach the level of 7% per annum.
“And by the end of 2017, we will receive the target value of 4% per annum and will continue to maintain this value indefinitely. Simultaneously, we will be able to reduce interest rates. And lower interest rates will make financial resources for the Russian economy more accessible,” said Shvetsov.