MOSCOW, October 24. /TASS/. It is essential for the Russian Central Bank to continue lowering inflation, the regulator’s chief Elvira Nabiullina told a press conference.
"People's expectations of high inflation will decline only if they see that prices in stores aren't constantly rising. If they do rise, no matter what we say, people will have high inflation expectations. Therefore, it's crucial for us to continue lowering inflation," she said.
Stabilization of inflation at a low level and weak inflation expectations will create conditions for a more rapid reduction of the key rate by the Bank of Russia, Nabiullina added.
The Bank of Russia has decided to cut its key rate by 0.5 percentage points to 16.5% per annum. The regulator indicated that it will maintain monetary conditions as tight as necessary to return inflation to its target.