Central Banking

IMF's Rato on Russian inflation threat

IMF Managing Director Rodrigo Rato warned Russian policymakers to focus on controlling inflation rather than stimulating growth, when he arrived on a visit to Moscow on Tuesday 16 November, reports AFX news.

Russia faces the challenge of managing large capital inflows due to high petroleum prices, as allowing these to enter the domestic economy would carry the risk of fueling inflation, he warned.

Russian authorities have so far been accumulating much of these reserves in a stabilization fund,