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Tougher monetary policy may be required for price stability — Central Bank

The disinflation trend of recent months stopped in April, the analysts noted

MOSCOW, May 28. /TASS/. If current price growth rates do not start going down, further toughening of monetary conditions may be required, Central Bank analysts said in the trends bulletin.

"Tough monetary conditions are required to be maintained for a long time in order to return inflation to the target. Furthermore, if current price growth rates and inflation expectations do not start decreasing again, further toughening of monetary conditions may be required to restore the price stability," experts said.

The disinflation trend of recent months stopped in April, analysts noted. "This is seen from the general CPI [consumer price index - TASS] and across a wide range of analytical indicators. Further bringing closer the gap between the total demand and production capabilities of the economy is required for disinflation to resume. This can only be achieved through more moderate demand growth against prior quarters," Central Bank experts said.

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