MOSCOW, October 23. /TASS/. High inflation expectations give rise to concerns of the Bank of Russia, Central Bank chief Elvira Nabiullina said at a press conference after the Board meeting.

"When we all become accustomed to high inflation for several years thus far, it certainly affects inflation expectation. Higher inflation expectations in their turn directly influence the demand, the savings tendency, and inflation eventually. From the standpoint of the long-term prospects, we are highly concerned that inflation expectations are high and has not showed meaningful and stable downward dynamics yet," she said.

The Russian economy should gradually move to balanced growth rates, Nabiullina stressed.

"We believe we should gradually move to balanced growth rates. It will be step by step. Growth rates naturally decline after overheating under influence of the tough monetary policy in the first instance but the transition to balanced growth rates will gradually take place," she noted.

Investments continue their recovery in the national economy, the Governor of the Bank of Russia stressed.

"Investments continue recovering. It can be judged from the increase of production and imports of investment goods and positive dynamics in construction. According to data of our poll, businesses expect a moderate rise in investments in the fourth quarter," she added.

Earlier today, the Bank of Russia decided to keep the key rate at 14% per annum.