Russia's central bank chief says, rise in oil prices to keep inflation lower

Russia's central bank will not need to raise interest rates further if the two rate hikes it carried out last year prove enough to keep inflation in check, its monetary policy chief Alexei Zabotkin said. In an interview with Reuters, Zabotkin said the rouble's dynamics this year, which have seen the currency rise with oil prices was "rather logical" and should help keep inflation lower.

Speaking about the lingering risks of U.S. sanctions against Moscow, Zabotkin said the central bank assumes that "a possibility of adverse development of things remains in place". But the central bank would rather use tools other than interest rates to address risks related to sanctions, Zabotkin said.

(With inputs from agencies.)