In the long term, energy-saving technologies will influence the price of oil, a quick return to high oil prices is not foreseeable, said the head of the Bank of Russia Elvira Nabiullina at the XXV International financial Congress.
“We must learn to live in conditions of low prices for oil and gas”, — said Nabiullina. She also noted that one of the last external risk for Russia is the slowing of China’s economy. According to her, the slowdown of China’s economy by 1 percentage point leads to a slowdown in Russia’s GDP by 0.5 percentage points in the medium term under the current structure of trade. “Russia should refocus on fast-growing sector of China”, — said the head of the Central Bank.
Overall, according to Nabiullina, the monetary policy of the Central Bank allows to respond flexibly to internal and external challenges, but the regulator needs to consider the question of structural reforms.
“Monetary policy together with fiscal policy to ensure macroeconomic stability. We need the fiscal rule. Despite the fact that the dependence of exchange rate on oil prices declined, it still remains high. The fiscal rule would further reduce the dependence of economy from fluctuations in oil prices. It is important to note that the fiscal rule would reduce inflation risks and would allow the Bank to pursue more accommodative monetary policy,” Nabiullina explained.