MOSCOW, Sept 13 (Reuters) - The Russian central bank said on Friday it would increase the flexibility of the rouble's exchange rate next year, under an updated medium-term strategy that primarily focuses on achieving low and stable growth in consumer prices.
The draft medium-term monetary policy guidelines confirmed the central bank's inflation target at 4.5 percent in 2014 and 2015, falling to 4 percent in 2016, with a tolerance of 1.5 percentage points either way.
The central bank will reduce forex interventions and increase the flexibility of the rouble's moves against a target exchange-rate corridor that guides it when it steps into the market.
'In 2014, work will be completed on creating the conditions for the transition to a floating exchange-rate regime,' according to the draft.
Under its current policy, the central bank can intervene to the tune of $400 million at the boundary of the seven-rouble corridor, before undertaking a shift. The approach is designed to smoothe volatility but not defend levels.
(Reporting by Oksana Kobzeva; Writing by Douglas Busvine; Editing by Jason Bush) Keywords: RUSSIA RATES/STRATEGY
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