Reuters Summit: Russia central bank's Yudayeva - high inflationary expectations require restrained approach

By Elena Fabrichnaya

MOSCOW (Reuters) - Inflationary expectations in Russia remain high and require a restrained approach from the central bank in softening its monetary policy, First Deputy Governor Ksenia Yudayeva told Reuters.

"We are now in a period which I would call a period of policy normalisation, just as in other countries," Yudayeva said at the Reuters Russia Investment Summit.

Speaking at the at the Summit at the Reuters office in Moscow, Yudayeva said Russia's key rate should be at 6.5-7 percent, a level the central bank considers to be 'neutral', when inflation is stable near its target of 4 percent.

"But now, when inflationary expectations are high, it is impossible to quickly cut the rate to this level as it may lead to significant risks," Yudayeva said.

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(Additional reporting by Darya Korsunskaya, Kira Zavyalova, Dmitry Antonov, Christian Lowe, Vladimir Soldatkin, Katya Golubkova and Andrey Ostroukh; writing by Katya Golubkova; editing by Jack Stubbs)