MOSCOW, MARCH 22, (RIA NOVOSTI). Parliament insists on rouble rates sent down. The Central Bank of Russia is dead set against it, bank president Sergei Ignatyev said to the State Duma, lower house, as its budget and taxation committee was sitting in joint session with the committee for finance markets and banking.
The rouble has been on a steady upswing for two years now to the detriment of Russian-based manufacturers in the domestic and foreign markets alike, and to dampen their solvency, argued parliamentarians.
That might be true but a rouble fall will sweep up inflation, which has been dropping pace within several preceding years. "It is out of the question to bring the real effective rouble rate down painlessly," Mr. Ignatyev retorted.
The Central Bank is closely monitoring the developments and will not tolerate rapid rouble rises. "We shall not allow the real effective rate get more than 7 per cent up even with the year's petroleum prizes very high," he added reassuringly.
