There will be no direct impact on the country’s financial sector, says Elvira Nabiullina
The unfolding banking crisis in the United States increases risks for the global economy, but cannot directly affect Russia, according to Russian central bank official Elvira Nabiullina.
Moscow said earlier that Western sanctions and the resulting disconnect from the international financial system have proved “a blessing in disguise” for Russia.
“Assessing external conditions, I can only comment on the current state of the banking system in the United States and Europe,” Nabiullina said at a press conference on Friday. “There is no direct impact on the Russian financial system, but this new factor alone adds uncertainty to the future trajectory of the global economy.”
According to Nabiullina, recent events exacerbate the problem for Western central banks to find a balance between pursuing monetary policy objectives and managing risks to the financial system. “On the one hand, we see the vulnerability of the financial sector to interest rates and other risks. On the other hand, the current inflationary pressure remains high. Combined, this may increase the risks…of a recession in the global economy, despite the strong data we have seen recently,” she explained.
She added that for Russia, a slowing global economy could mean lower demand for the country’s exports, which would add inflationary pressure.
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