RIA Novosti citing Odd Per Brekk the International Monetary Fund Senior Resident Representative in Russia as saying that Russia should orient its monetary policy more strongly toward fighting consumer price inflation.

He said that "Russia monetary policy needs to be anchored more firmly on inflation. This is because low and stable inflation is key to mobilizing resources domestically and channeling them to productive investment and other uses."

He added that "Our analysis suggests that a medium-term target range for inflation of three to five percent would be appropriate.”

Mr Brekk said the IMF agreed with the Bank of Russia intention to move to fully-fledged formal inflation targeting, in the context of a flexible exchange rate by 2014.

He said that "It will be important to continue progress towards a more flexible ruble exchange rate and at the same time strengthen the Bank of Russia's monetary policy toolkit."

(Sourced from RIA Novosti)