MOSCOW, September 19 (RIA Novosti) - The Central Bank of Russia said Tuesday it could cut significantly refinancing rates if 2006 inflation was not more than 9%.
"If we stay within a 9% inflation target, there will be cause for substantially reducing the refinancing rate," said Alexei Ulyukayev, first deputy chairman of the Central Bank of Russia.
He did not say what "substantial reduction" meant, but said the rate, now at 11.5%, could be cut before the end of the year.
He said accumulated inflation as of mid-September was at 7.1%, 0.3 percentage points less than in the same period last year.
Ulyukayev said the Central Bank might review the 2006 inflation projection of 8.5% when the September figures are released.
He also said the CBR was set to stay within its 9% target for growth in the ruble's real effective rate, adding that as of mid-September it was at 7.7%.
