Cbanker: Russia’s low economy growth stems from structural factors

MOSCOW, Sep 12 (PRIME) -- Low economic growth seen in Russia is linked to structural factors so the central bank’s monetary policy is almost powerless, Central Bank Chairwoman Elvira Nabiullina said at the Moscow Financial Forum on Thursday.

“In our opinion, the low economic growth rate in this country stems primarily from structural factors, and the monetary policy is almost helpless here,” she said.

Russia should avoid mistakes of the states, which ignored the structural nature of such deceleration and tried to “heat” the economy using the money printing machine.

“As a result, they had a short-term burst of the economy, then the economy shrank leaving them with all the problems linked to high inflation and instability.”

Nabiullina also said that large Russian banks should begin own credit risk assessment as they know their clients better that the central bank.

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