Russia's cenbank says inflationary expectations up in August

MOSCOW - Inflationary expectations for the year ahead among Russian households rose in August to 12.0% from 10.8% in July, the central bank said in a report on Wednesday.

The Russian central bank said it will closely watch changes in inflationary expectations which will play an important role in discussions at the bank's board meetings in September and October.

The bank cut its key interest rate to 8.0% in July and said it would study the need for more cuts as inflation slows and an economic contraction continues for longer than previously thought.