Russia has no need of a tighter monetary policy thanks to fading inflationary risks and a stronger rouble which can firm on the back of a strong current account surplus, the Deputy Economy Minister said on Sunday.
"We do not assume there is a need to raise rates. There are no factors (in place) for an acceleration in inflation," Andrei Klepach said on the sidelines of the Russian Economic and Financial forum in Strasbourg.
The central bank will meet on interest rates on June 30 and is widely expected to leave the policy unchanged after it said last month "an acceptable balance" between inflation and economic growth had been found.
Klepach reiterated Russia would meet its full-year inflation target of below 7.5 percent due to a seasonal decline in prices for vegetables and fruits, unless there is another global wave of a rise in food prices.
Since the start of the year, consumer prices have risen by around 5 percent, challenging the central bank's more optimistic forecast for a 6-7 percent inflation in 2011. The rouble has strong upside potential despite heavy net capital outflows, Klepach said.
Boosted by rallying oil prices, the rouble has this year firmed 8 percent versus the dollar and could have gained more if not for net capital outflow of more than $50 billion in the past seven months. Klepach said 2011 net capital flow balance could be "slightly negative".
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