MOSCOW May 11 Russia's central bank governor
Elvira Nabiullina said in an interview published on Thursday
that she preferred small rate cuts, reiterating there was a need
to further dampen inflation expectations.
"The Bank of Russia prefers gradualism in its policy. It's
better to move down by small steps than significantly cut
down the rate and then due to an unexpected shock raise it
back," Nabiullina told the EM communications agency.
Nabiullina also said she saw neutral nominal interest rates
at 6.5-6.75 percent with the central bank's inflation target at
She repeated that the central bank considered it possible to
restart replenishing the country's forex reserves once it had
met its 4 percent inflation target.
"We will purchase currency for reserves only if the market
situation is stable and our operations don't affect the FX
rate," Nabiullina said.
(Reporting by Andrey Ostroukh and Alexander Winning)