04 June 2015, 13:20 / Economy / News

Nabiullina: the financial system has adapted to new conditions, the economy has not

The current moment can be characterized as a period of adaptation of the economy and the financial system to new economic conditions, said Central Bank Chairman Elvira Nabiullina at the International Banking Congress. The financial system and balance of payments have already adapted to new conditions, which cannot be said about the economy as a whole, she said.

Oil prices have increased, but even if they stabilize at the current level, this is 1.5-2 times lower than prices over the past five years. There is no point in counting on the fact that exports will stretch our economy, Nabiullina said. The economy, in fact, will continue to lose $150-170 billion from exports, she said.

About $40 billion remains to be paid on external debt this year (minus intra-group payments by companies), given this level, the economy can go through this calmly, Nabiullina said.

Monthly and weekly inflation rates have returned to levels close to those seen in the past few years. In particular, the weekly rate decreased from 0.9-0.5 to 0.1% in May, Nabiullina said. In accordance with the forecasts of the Central Bank, inflation will begin to decline, in the medium term it will be 4%. The inflation forecast and lower inflation expectations allow the regulator to reduce the rate, Nabiullina explained.