The document identifies the tasks and goals to be pursued by the Central Bank in its monetary policies next year, and also methods and instruments for monetary regulation that will be used in achieving them, the press release says.
The Central Bank points out a significant improvement of Russia's economic performance as compared with the scenarios envisaged in the 2004 monetary policy guidelines.
Thus, for instance, the rate of cash demand growth, indicating higher dynamics and dedolarization of the economy, is likely to surpass the earlier projected level for 2004, Central Bank spokespeople say.
With this in view, the Bank of Russia may this year increase the monetary supply without any negative implications for its target inflation rate of 10 percent. In pursuing its objective of consistently lowering the inflation rate in 2005, it intends to contain the rise of consumer prices to 7.5-8.5 percent.
In 2005, the Central Bank will continue its managed floating currency regime. Rouble appreciation should not exceed 8 percent next year, bank spokespeople say.
To be able to achieve the goals set, the Bank of Russia will be using market instruments for absorbing excessive liquidity and refinancing banks. This will enable it to timely respond to changes in the intensity and course of financial flows, the press release reads.
