Ruble gradually finding equilibrium, strengthening in recent days, no prerequisites for further weakening - Russian deputy PM

MOSCOW. Dec 5 (Interfax) - The ruble has started to strengthen in recent days, gradually finding a new equilibrium, and there are no prerequisites for its further weakening, Deputy Prime Minister Alexander Novak told journalists in Moscow on Thursday.

"The exchange rate is determined by the market - supply and demand. It seems to me now that it [the exchange rate] is gradually finding its point of equilibrium. Yes, there was a spike [a significant weakening of the ruble], and now it is finding a point [of equilibrium]. We see a slight strengthening every day; we'll see what level it balances at," Novak said in response to a question about whether the current ruble exchange rate corresponds to fundamental factors.

Commenting on a follow-up question about the possibility of the ruble weakening further, Novak said, "In my opinion, there are no prerequisites for this at the moment."

The government and the Central Bank of Russia are "doing everything possible to curb inflation, both in terms of banking regulation and budgetary expenditures," he said. "The budget is formed according to the budget rules and does not have an inflationary character," he said.

"We are currently seeing a decline in consumer lending, and work is underway to reduce lending to legal entities," he said.

"These are all the factors that should affect the fall in inflation," he said.

Commenting on a question as to whether the Russian economy might begin to stagnate amid the high key interest rate, Novak said, "some experts talk about this [the risk of stagnation], but we are doing everything to prevent it."