The Russian central bank, which left its key refinancing rates unchanged last week, is leaning towards raising rates in the near future, First Deputy Chairman Alexei Ulyukayev said on Monday.

"The chances of a decision being taken to raise rates are higher, compared to the possibility of a decision not to change rates," Ulyukayev told an economic forum.

Ulyukayev said that previous central bank statements which had followed decisions to keep rates on hold had contained a sentence saying rates should be maintained in the next few months. The latest statement did not contain that sentence.

"The very absence of that sentence must mean that the regulator is not quite sure that it will not do anything in the next few months," Ulyukayev said.

Faster industrial growth, gross domestic product expansion and investment in September and November had changed the growth/inflation ratio, he said.

"This means that trends of crisis recovery and growth are becoming more long-term," he said.

Rising basic inflation and higher non-food prices meant that inflation was picking up not only due to the supply shock that happened in the aftermath of this summer`s drought, but due to pressure of some monetary factors, Ulyukayev said.

"This gives grounds for the regulator to think about using an interest rates instrument, its the most powerful weapon. I am not saying we will do it soon. But we have at least removed this reservation, untying our hands," he said.
sections: Economics