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High key rate led to inflation slowdown — Bank of Russia

The pace of inflation and economic activity provides sufficient grounds to lower the rate, the Central Bank chief said

MOSCOW, June 6. /TASS/. The high level of the key rate resulted in a significant slowdown of inflation and the Central Bank has become more confident in resilience of disinflationary processes, Governor of the Bank of Russia Elvira Nabiullina said at the press conference after the Board meeting.

"The high key rate led to a significant slowdown of inflation. The rise in prices continues to differ strongly by groups of goods and services but we have nevertheless become more confident in resilience of disinflationary processes," she said.

The pace of inflation and economic activity provides sufficient grounds to lower the rate, the Central Bank chief said. The regulator will at the same time keep tough monetary conditions for a long time as needed for the steady return of inflation to the 4% target, she added.