By Central Bank News
The central bank of Russia kept its key refinancing rate unchanged at 8.0 percent, saying that inflation remains within its target range despite a recent uptick.
The Bank of Russia said the rise in inflation to an estimated 5.7 percent annual rate by August 6 was due to a planned increase in regulated prices and higher food prices.
“The worsening of the food market conditions in Russia and globally as well as the downward revision of this year’s crop harvest are the important sources of inflation rise, particularly taking into account their influence on inflation expectations,” the bank said in a statement.
Economic growth remains close to its potential level, the bank said, adding that this implied an absence of demand-pull price pressures and it did not see a higher risk of economic slowdown despite a deceleration in June’s industrial production.
Bank of Russia has held its refinancing rate unchanged since cutting it by 25 basis points in December 2011. The bank’s medium-term target is for an annual rise in consumer prices of 4-5 percent by 2014, down from its current 5-6 percent target.
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