Reducing key rate should be, will be natural process based on macroeconomic indicators - Putin

MOSCOW. July 14 (Interfax) - The Central Bank of Russia will ease monetary policy as a natural process tied to macroeconomic indicators, Russian President Vladimir Putin said.

The key rate was discussed at the president's working meeting with Yakutia Governor Aisen Nikolayev.

"Coal companies [mining coal in Yakutia] are moving forwards despite the problems with the global market, despite the fairly serious situation we are facing within the country, where the strong ruble is also a hindrance, to be frank - as we are an export-oriented republic - and, of course, the high key rate. I have spoken to Nabiullina [CBR Governor Elvira Nabiullina], and she seemed to promise that the rate would be lowered fairly steadily... This is very important, and this is very necessary for us," Nikolayev said.

"This should happen; and this will be a natural process based on macroeconomic indicators and stability in the economy," Putin said in response.

"And, I hope, the ruble will ultimately not be that strong. A strong ruble is good, but in good measure," Nikolayev said.

"We have less need for currency, less than before," Putin said.

The CBR will hold its next monetary policy meeting on July 24. Anticipation that the regulator could hold the rate - or even raise it in light of rising fuel prices and the secondary proinflationary effects which this could have - has been a key factor leading the Russian stock market to decline over the past few weeks.