The head of the regulator noted that pro-inflationary risks for the economy will continue to have a significant impact on its condition.
The head of the Bank of Russia, Elvira Nabiullina, said at a press conference that the introduction by the European Union of an embargo on oil supplies from the Russian Federation could lead to an increase in inflation, a correspondent reports. The Moscow Post.
Nabiullina warned that if Russian oil exports decline, there will be a process of shrinking the trade balance. This will lead to a fall in the exchange rate of the ruble, and, therefore, to increased inflation in the country. At the same time, much will depend on the coming months and how companies will redirect oil supplies from Russia to other markets. At the same time, a short-term decrease in supply volumes can be offset by an increase in prices in the future.
According to Ms. Nabiullina, the main threats to accelerate inflation in the Russian Federation are external conditions. In addition to the oil embargo, pro-inflationary risks may be borne by a decrease in demand for Russian exports. In the event that the supply of Russian products can be redirected to the Russian market, this situation may also turn into a disinflationary effect.
Recall that earlier on Friday, June 10, the Central Bank announced about the reduction key rate by one and a half percent, from 11% to 9.5%. The reasons for such actions on the part of the regulator were a decrease in inflation, as well as a relative increase in the rate of economic activity of the population and companies.
