Central Bank Governor Elvira Nabiullina spoke about the factors restricting Russia’s economic growth, Interfax reports.
She believes that the current economic scenario is not risk-laden. In other words, there are hardly any objective reasons for a crisis. Oil prices are currently higher than the prices on which the federal budget is based. Foreign investors are interested in Russian assets. However, the current economic situation is not exactly glowing.
“The economic growth rate is very low. Businesses do not see any prospects for now. Household income is not growing,” she admitted in her remarks at the International Financial Congress.
At the same time, the governor thinks that it is not the bottom that the economy hit (as many experts claim) but a structural ceiling. It means that it is too late to use ordinary instruments of the monetary policy to stimulate GDP growth. Structural reforms are necessary, specifically, reforms that will improve the investment climate.