Russian Central Bank ready to keep rate high as long as necessary to return inflation to target - Nabiullina

MOSCOW. April 26 (Interfax) - The Bank of Russia is ready to keep the key rate at a high level for as long as it takes for a stable return of inflation to target; if the disinflation process is slow, then it is possible the high levels could stay through the end of the year, Central Bank Chairman Elvira Nabiullina said at a briefing following a meeting of the board of directors, where it was decided maintain the rate at 16% per annum for the third time in a row.

"The decisions made last year to increase the key rate made it possible to significantly reduce persistent inflationary pressure. Because of them, inflation will drop to 4.3-4.8% by the end of this year. We are ready to keep the key rate at high levels for as long as it takes to see a sustainable return of inflation to target," she said.

As for when a rate cut might occur, Nabiullina said it depends on the speed of disinflation. "It all depends on how this will happen in the coming months, and we won't name a specific point - the second, third quarter. But once again, if disinflation is very slow, then it is possible that the rate could be maintained until the end of the year," Nabiullina said.