MOSCOW, June 10 (RIA Novosti) - Russia's Central Bank could take additional measures to strengthen the ruble should budget spending be increased next year, the bank's chairman told parliament's lower house Thursday.
Speaking at a session of the State Duma Banking Committee, Sergei Ignatyev said the measures would be needed to insulate the economy against inflation, which may rise above the projected rate of 8% in the event of higher budget spending.
Another possible consequence would be a slowdown in the pace of GDP growth. "GDP won't fall, but its growth may prove slower than the target, albeit by less than a percentage point, I think," the chairman said.
Ignatyev served as Deputy Finance Minister, Deputy Economics Minister, and presidential advisor on economic issues before he was appointed Central Bank Chairman in March 2002. Last Thursday, President Vladimir Putin asked parliament to confirm him for a second term.
