NOVO-OGARYOVO, June 28 (RIA Novosti) - Inflation in Russia will stay well below the projected 13% in 2009, and the country's monetary authorities are likely to further cut key interest rates amid slow consumer price growth, the Central Bank's chief said.
At a meeting with Russian Prime Minister Vladimir Putin on Saturday, Sergei Ignatyev said that the Central Bank had cut its key refinancing rates three times this year, from 13% to 11.5% as a result of consumer price growth deceleration.
"In April-June, the inflation rate dropped about 50% as compared with the same period last year. I hope that this trend will continue," Ignatyev said.
Russian inflation reached 7.0% as of June 8 compared with 8.1% a year ago. Last year, inflation measured 13.3%. The government's official inflation forecast for 2009 is 13%.
Russia's lower house of parliament confirmed on Wednesday Ignatyev as chairman of the Central Bank for his third and last four-year term.
Ignatyev is credited with overseeing the ruble's smooth devaluation at the beginning of the year amid the ongoing global financial crisis, helping the national currency reach its equilibrium level despite major pressure from speculators, creating advantages for domestic producers due to the devaluation effect.
