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EXCERPTS-Russian central bank governor speaks at press conference

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MOSCOW, Sept 10 (Reuters) - The Russian Central Bank Governor Elvira Nabiullina spoke at an online press conference after the central bank raised its key rate to 6.75% on Friday.

ON RATE DECISION

“Three options were under discussion: to keep the rate unchanged, 25 bps hike and 50 bps hike.”

ON FUTURE RATES

“Should the situation develop in line with the baseline forecast, the Bank of Russia doesn’t rule out a possibility of a further rate hike at its next meetings.”

“In order to return to inflation of 4%, more than one hike could be needed. In that regard, the signal has become more hawkish.”

“The key rate could exceed 7%.”

“It is premature to say when the central bank will embark on the rate cuts.”

ON ECONOMY

“The economy has not only restored, it is returning to the pre-COVID trajectory of growth.”

“Once the recovery stage is over, the economy will develop more gradually.”

“Budget policy has normalized in 2021, deficit has noticeably narrowed. Budget contribution has been more desinflationary.”

ON MONETARY POLICY

“The monetary policy should not let the inflation spiral to unwind.”

“It is too early to say whether the recent key rate hikes were sufficient to return to the inflation target.”

ON BELARUS

“Harmonization of the monetary policies of the two countries is under discussion.”

ON OTKRITIE BANK

“IPO is the main option to sell (the central bank’s stake) in the bank.” (Reporting by Elena Fabrichnaya and Darya Korsunskaya; writing by Vladimir Soldatkin Editing by Katya Golubkova)

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