ST. PETERSBURG (Sputnik) – Nabiullina said during the 24th International Banking Congress in St. Petersburg:
“Of course, oil prices have risen, but even at their current stable level they will remain one and a half times lower than over the past five years. Moreover, the prices on other traditional Russian goods exports are dropping, so it’s not worth thinking that exports will extend our economy.”
“The economy continues to lose collecting on export [goods], at least $150 billion to $170 billion, according to our estimates in comparison with the accepted level and while paying for foreign debt,” Nabiullina added.
“Thanks to the measures taken over the last few months, inflation has begun to slow and currently the pace of the monthly and weekly inflation rate has returned to the levels that were observed over the last few years.”
Nabiullina said that a rapid lowering of percentage rates, which the Central Bank is called to do, carries risks for both the currency market and inflation.
“A more rapid lowering of the percentage rate, which we are sometimes asked to do, in our opinion carries risks since inflationary expectations are so far high and an extremely rapid lowering of the rates in these conditions is capable of leading to a new wave of destabilization on the currency market and a hike in inflation,” Nabiullina explained.
