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QUOTES-Russian central bank governor speaks after cutting interest rates

reuters.com · 04/29/2022 08:20
QUOTES-Russian central bank governor speaks after cutting interest rates

Adds quotes on inflation, gas-for-roubles payment scheme

- Russian Central Bank Governor Elvira Nabiullina gave a news conference after the central bank cut its key rate to 14% on Friday. nL5N2WR43U

Nabiullina spoke in Russian. The quotes below were translated into English by Reuters.


ON INFLATION

"Over the past two weeks, current (levels of) inflationary pressure stabilized after a sharp rise in early March. But they still remain high. Inflationary expectations of the population in April returned to the levels seen midway through last year. Public opinion polls indicate that the expected inflation is lower than the one observed, meaning that people think prices will no longer rise so rapidly."

"Companies' short-term price expectations have also declined but are still higher than last year's. The stabilization of inflation expectations and an increase in saving sentiment mean that the risk of an inflationary spiral has decreased."

"Of course we are all interested in inflation steadily slowing down. The current inflationary pressure is now decreasing following a sharp rise in prices in February-March. Going forward (inflation) will depend on the development of the situation, and first of all, on how quickly the supply of goods and services will adjust."

ON RUSSIA'S GAS-FOR-ROUBLES PAYMENT SCHEME

"These rules (for this payment scheme) are made available to gas buyers, create a clear understanding that the payment mechanism itself is transparent, balanced. In the current situation, we do not see the need to make changes to the established procedure."

"We are aware of the concerns of some gas buyers about the possibility of difficulties arising with the conversion of currencies sent to special accounts at an authorized bank... We want to assure that if the established procedure for the interaction between gas buyers and the authorized bank is observed by the buyer, and there are no problems for the authorized bank in terms of selling currency on the exchange due to restrictive measures imposed by foreign states, then there can be no obstacles to paying for and receiving natural gas."


(Reporting by Reuters; editing by Guy Faulconbridge)