Anti-inflation measures producing results, we have right to expect reduction in key rate - Putin

MOSCOW. June 10 (Interfax) - The measures taken by the government and the Central Bank of Russia to combat inflation are already yielding results, and it is reasonable to expect a reduction in the key rate, President Vladimir Putin believes.

"Of course, we understood perfectly well, and have said many times [...] that the measures being taken, which were supposed to reduce inflation, would affect economic growth and investment activity. Someone here rightly said: this investment pause must not lead to a 'freezing' of the economy. We understood this from the start and spoke about it. However, I think it would be fair to correct this. After all, there is no investment pause; the investment process continues. To a certain extent, we could talk about investment restraint, which is understandable, as it is dictated by issues related to macroeconomics and the measures taken by economic and financial authorities. This applies to both the national currency exchange rate and the key rate," Putin said at a meeting with the government.

"The situation is generally under control; that's absolutely clear. The measures being taken are producing the desired result, inflation is falling. What is it, just over 5 percent? Therefore, I think we have the right to expect a reduction in the key rate and the achievement of other necessary parameters," Putin emphasized.

Putin also noted the words of Finance Minister Anton Siluanov, who said that in order to reduce the interest rate, a low budget deficit is necessary, something on which the Finance Ministry is working.

"Anton Germanovich [Siluanov] said this about the budget, and accordingly, the rate will change, and this will be reflected in the exchange rate. We are not doing anything artificially here. I think that experts, including investors, should also evaluate this," Putin said.