The Russian economy still has reserves, though they will end, Central Bank Governor Elvira Nabiullina said addressing the State Duma (lower house) on Monday, adding that the country is expected to enter the period of structural transformation in Q2 or at the beginning of Q3 2022.
"The period when the economy can live using reserves will end, and as early as in Q2 or at the beginning of Q3 we will enter the period of structural transformation, searching for new business models," she said.
Meanwhile, there will be price surges during this period, which is why inflation will be above the target, Nabuillina noted. "The economy is entering a challenging period of structural changes connected with sanctions," she said, adding that "sanctions have hit the financial market in the first place, though now they will be having a stronger impact on the economy".
