Inflation may rise to 7% - the Bank of Russia

The head of the Central Bank Sergey Ignatiev believes that inflation could rise significantly. In his view, the threat of accelerating inflation appears in the second half, with 6,5% in March, it can grow up to 7%. Ignatieff did not assure the banking community. According to him, even if the April inflation will be low, it does not mean that the refinancing rate will be reduced. "We are not thinking about the past and the future" - said the head of the Central Bank. The decision will be guided by the dynamics of industrial production and other indicators. In other words, the Bank of Russia is afraid of inflation, experts of the Central Bank does not believe that this year will be low inflation (this is very much hope our government), which is why the regulator is very cautious on the issue rate reduction. Russian banks continue to build up reserves for possible losses, said Ignatieff. "I think we have passed the peak in December. For the first quarter delinquency decreased by 1 percentage point (...) While in general the system is an increase of reserves: January 1, they accounted for 1.422 trillion rubles, and by April 1 rose to 1.508 trillion rubles, "- Ignatieff said, adding that it was a performance without regard to the Savings Bank. "A rather decent growth in reserves," - he stressed.