Inflation Russia slowing tangibly, important to get through cooling period properly by easing monetary policy on time - minister

MOSCOW. June 3 (Interfax) - The Russian economy has entered a period of cooling with more and more sectors on the decline, while inflation is slowing tangibly, but it is important to get through the cooling period properly by easing monetary policy on time and preserve targeted GDP growth of 3% going forward, Russian Economic Development Minister Maxim Reshetnikov said in the "open dialogue" framework at the Federation Council.

"The economy has now entered a period of cooling following the high growth rates of the past two years," he said.

"We are seeing more and more branches of the real sector show a decline in output. Consumer demand growth is slowing. Additional household income continues to go into savings, not the consumer market. Statistics show a tangible slowdown in inflation," the minister said.

"Monetary tightening and banking regulation measures are squeezing credit. Demand for investment products is declining, above all for machinery, special equipment, trucks, light commercial vehicles and buses," Reshetnikov said.

"The task now is to get through the cooling period properly. We expect monetary policy to be eased in good time in order to preserve the targeted 3% growth rate outlined by the president in the future," he said.

The government, for its part, "is also taking steps to optimize the investment programs of our largest companies and to fine-tune support measures, focusing them on our technological priorities," Reshetnikov said.

"The task must be accomplished against the backdrop of ongoing external challenges and sanctions pressure," he said.