Russian says inflation seen quickening by year-end despite weak demand

MOSCOW, Aug 12 (Reuters) – Russia’s central bank said on Wednesday it sees inflation quickening to a range of 3.7-4.2% by the end of the year, despite weak demand in the economy.

In a report, the bank said the upward pressure on inflation from a weaker rouble would gradually evaporate.

Analysts polled by Reuters in late July expect the central bank to make one more rate cut this year, to a new record low of 4%, in the face of economic contraction and subdued inflationary risks. Its next rate-setting meeting will be on Sept. 18.

Inflation, which currently stands below the bank’s 4% target at 3.4%, is seen ending this year at 3.7%, the poll showed. (Reporting by Andrey Ostroukh; Writing by Alexander Marrow Editing by Gareth Jones)

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