CBR First Deputy Chief Alexei Ulyukaev doesn’t view inflation a worthy opponent for the Central Bank of Russia.
Photo: Svetlana Privalova
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Capital Thought Better
The capital inflow has resumed in April, CBR First Deputy Chief Alexei Ulyukaev told the State Duma yesterday, forecasting that the annual inflation won’t surpass 10 percent. The analysts agree that the capital inflow won’t fuel the inflation but point out that there are no chances to contain it within 10 percent.
“I strongly believe that we have all chances to notably lower the inflation this year vs. the previous one and fit into one figure, a bit less than 10 percent,” Ulyukaev told the State Duma’s Financial Market Committee yesterday apparently not discouraged by the fact that the accumulated inflation reached 6 percent by April 21.
Ulyukaev reiterated yesterday his idea that Russia’s inflation is the characteristic and evident feature of economy’s overheat and its nature is monetary by 100 percent. His optimism roots in the movement of money supply. The rates have slowed down, the growth was 47 percent in early this year vs. below 40 percent today, the official said, making clear that the CBR will spare no instruments of monetary policy for the purpose of fueling this trend and the increase in interest rates and the ruble rate of exchange will be no exception.
The second vital statement of Ulyukaev related to the growth revival for net capital inflow. “The turning point has been evidently passed in the capital movement. To all appearances, it happened in late past month. We will have some inflow in April,” Ulyukaev said. The CBR has bought roughly $10 billion on the public market this month, the official specified.
www.kommersant.com
All the Article in Russian as of Apr. 25, 2008
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