The Bank of Russia said about the likelihood of a long period of low oil prices

The Central Bank of Russia started the revision of its macroeconomic forecasts in connection with preservation of low oil prices in the long term, said the head of the Bank of Russia Elvira Nabiullina at a meeting with heads of credit institutions.

“Now we’re reviewing our forecasts, it is likely that oil prices will remain low for a long time”, — said Nabiullina, explaining that a new wave of reduction of prices on oil has created additional challenges for the economy and for the financial system.

CB Chairman noted that last year the Russian banks have learned to find niches that bring them income, and is able to work normally without the provision of the Central Bank of new benefits. But because the Central Bank has no plans to renew after the first quarter the period of the preferential ratio of risk per one borrower and group of borrowers.

Nabiullina emphasized the fact that the Central Bank is concerned about the decline in small business lending, which had declined in the past by 4.4%. Lending to individuals, according to the head of the Central Bank, is decreasing due to measures taken by the controller to cool the market, and also due to lower incomes.

One of the objectives of the Central Bank by 2016 Nabiullina called the de-dollarization of banks ‘ balance sheets, one of the reasons was the increase in the share of dollar deposits at the end of 2014 and early 2015.

CB head stressed that the Bank of Russia does not intend to completely abandon the use of FX interventions, but plans to pursue them only when a threat to the financial stability of the country.

Earlier, the press service of the Central Bank reported that the Bank of Russia is not currently considering opportunities “effect on the movement of the ruble into one side or the other”, because the artificial influence of the “nothing but harm the Russian economy cannot bring”.