UPDATE: Cbank sees no risk to financial stability on new sanctions
(Rewrites to add comments of Nabiullina)
MOSCOW, Apr 10 (PRIME) -- Russia’s central bank has enough instruments to prevent risks to financial stability, but sees no necessity to implement any systemic measures now, Chairwoman Elvira Nabiullina said at a stock market forum on Tuesday.
“The central bank has a wide variety of instruments to act under different circumstances if there are risks to financial stability. From our point of view, now there are no such risks and there is no necessity to take systemic measures. But we will watch the situation and implement corrections if they are needed,” she said.
Russia’s economy needs some time to adapt to changes of external conditions, she added. “In our view, some time is needed for adaption of both the financial sphere and the economy to changed external conditions,” she said.
“We all know that the Russian economy is an open economy, we have a big share of exports, many large companies oriented for exports… Obviously, events that happened on Friday led to correction of the market. We are monitoring it,” she said.
The central bank also has tools that will allow it to limit the influence of the new sanctions on inflation, she said, adding that Russia’s inflation is at its all-time lowest of 2.4%.
“We will gradually… approach (the targeted) 4%. By the way, we see inflation as one of the reasons for macroeconomic stability including situations of different external changes,” she said.
Economic Development Minister Maxim Oreshkin said that the new U.S. sanctions are a good checkup of Russia’s macroeconomic structure.
“What has happened is a good test for the macroeconomic structure that has been built by the government and the central bank over the past few years,” Oreshkin said, adding that he has no doubts that Russia’s economy and financial markets will weather the current burst of volatility.