11 June 2004 04:45
Ignatyev says higher Western rates won`t influence Russia (Part 2)
MOSCOW, June 11 (Interfax) - Growing interest rates in Western banks would not negatively influence the Russian
financial market, said Central Bank Chairman Sergei Ignatyev.
"Expectations concerning an increase in interest rates in the West were formed long ago. The market is expecting
it. When it happens, it will not cause any problems for Russia," Ignatyev said at a meeting with President Vladimir
Putin on Friday.
the country, he said.
"We will be able to neutralize this," Ignatyev said.
Putin noted that he thinks the increasing of refinancing rates in
The president explained his interest in this subject by the fact
that it was discussed at the G8 summit in the U.S., from which he has
just returned. "This information has long been circulated in the
This development could result in "some reduction in capital inflow into Russia and some capital outflow from the
country," Ignatyev said.
Taking into account the gold and foreign currency reserves that Russia currently possesses, this is not fraught with
any troubles for
to keep its promise not to allow the ruble to strengthen more that
necessary for proper economic growth." Putin said he expects "the
the West could cause "an outflow of speculative capital from Russia. But this should not negatively influence
the country's financial system."
financial world," he said.
Ignatyev also assured the president that the Central Bank "will try
Central Bank to cope with this task." [RU EUROPE ASIA EEU EMRG BNK LAW] va tl
[Interfax] |
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