MOSCOW (Sputnik) — Annual inflation in Russia has slowed down to 6 percent, Governor of the Bank of Russia Elvira Nabiullina said Friday.
“The Bank of Russia has been conducting a moderately strict monetary policy in the past two years which is necessary to lower inflation … Inflation has fallen significantly, the growth rate of consumer prices has slowed down in annual terms to 6 percent,” Nabiullina told the parliament.
Russia’s banking system is stable, the currency risk has been minimized against ruble’s reduced dependence on oil, Nabiullina said.
"The banking system overall is stable, the profit growth of banks this year is fourfold as compared to last year, which was rather difficult for the banking system," Nabiullina told lawmakers.
She added that the currency risk has been reduced amid ruble’s reduced dependence on oil prices.
Nabiullina confirmed Friday that the bank's key rate would next be lowered not earlier than in the first or second quarters of 2017.
"Now the key rate is 10%, and the next lowering, as we have already said, is likely not earlier than the first or second quarter of next year," Nabiullina said.
She added that structural factors limit economic growth, estimating potential GDP growth at less than 1.5-2 percent should there be no structural changes.
