Rising oil prices will not solve the internal problems of the Russian economy, but may create the illusion of returning prosperity, Central Bank Chief Elvira Nabiullina believes.
Russia’s Central Bank does not expect sharp changes in the country’s economic structure in the nearest future, Elvira Nabiullina said.
"The oil price dynamics will remain a serious factor for the Russian economy due to a low level of Russia’s economic diversification," she said.
Nabiullina called on the government not to put up with the "ceiling" of the Russian economy growth at 1.5-2%.
"There aren’t easy recipes for the recovery of the Russian economy's ability to grow rapidly, but we should not put up with a ceiling of 1.5-2%," TASS cited her as saying.
She noted that there will be no sharp changes in the economic structure as it needs time. "The growth rates will be positive, but unfortunately will remain at low levels," she added.
"In the end of the year we expect that inflation will be 2.5 times lower than at the end of last year. This is comparable to the low level inflation reached in 2011-2013, but we had cases when inflation fell, and then rose. Volatility of inflation is also a factor of uncertainty for business projects, so a one-time decline is not enough. We need to ensure that low inflation becomes a long-term basis for price stability," she said.
