Central Bank: low oil prices will increase inflationary risks

Central Bank: low oil prices will increase inflationary risks


The persistence of low oil prices will lead to greater scale of adaptation of economy to new conditions, said the release of the Bank of Russia.

MOSCOW, 29 Jan. Long preservation of oil prices at a low level will increase inflation risks and risks to financial stability, said in a press release of the CBR.

“If oil prices will remain low for a long time, it will lead to a further increase of inflation risks and risks to financial stability, as well as to the need for large-scale adaptation of economy to new conditions,” — noted in the Central Bank.

The Bank of Russia on Friday decided to keep the key rate at 11% per annum. Last year the Bank of Russia gradually cut the rate. However, in the meeting of 11th September, the regulator for the first time since the beginning of the year has left it unchanged. Since then the rate “stuck” at 11% per annum.