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. Last Updated: 07/27/2016

Money Base Grows 2%




MOSCOW -- Russia's rising money base grew by 2 percent in the third week of May, the Central Bank said Friday, but inflation remains low.


Seven weeks of ruble printing, reversing a trend of stability since the start of the year, has allowed the Central Bank to increase reserves and pay some wage and pension arrears and some of the government's foreign debt. But the new trend would double rubles in circulation in under a year.


The money base rose to 236.7 billion rubles from 232.1 billion in the week to May 24, taking the total rise since April 5 to 14 percent.


Economists said it generally takes two or three months for a rise in the money base to affect inflation. Consumer inflation this month, if current trends continue, will be 2.5 percent, against 3 percent in April.