YEREVAN, September 25. / ARKA /. The World Bank expects that Russian inflation rate will be 5-6% by the end of the year, as much as projected by its Central Bank, RBC reports.
“Given the relatively low rate of potential growth, we expect the tough job market to continue putting upward pressure on prices this and next years. Thus, the Bank of Russia will have limited ability to ease monetary conditions, if it wants to stimulate economic growth,’ the economic development ministry said in a report.
The weakening, according to the World Bank, is likely to have a slight stimulating effect on economic growth. On the other hand, it can undermine the credibility of the Bank of Russia’s policies and weaken its recently achieved success in containing inflation expectations.
In mid-September, the head of the Bank of Russia Elvira Nabiullina stated that the Central Bank expects to keep inflation in 2013 at around 6%.
“Inflation, if there are no additional shocks, and if all the current trends continue, especially regarding food prices, we will meet the target range of 5-6 %,” she said. -0-
