17 Mar 2023 15:47

U.S., Europe banking crisis having no direct effect on Russian financial sector, but can raise risk of worldwide recession - Nabiullina

MOSCOW. March 17 (Interfax) - The situation in the U.S. and European banking systems does not directly affect the Russian financial sector, but adds uncertainty about the future trajectory of the global economy, Elvira Nabiullina, head of the Central Bank, said at a press conference.

"There is no direct impact on the Russian financial system, but this factor in itself adds uncertainty about the future trajectory of the global economy. The current situation is exacerbating the problem of balancing between monetary policy goals and financial stability risks for Western central banks. On the one hand, we see the vulnerability of the financial sector to interest rate and other risks, on the other hand, current inflationary pressure remains elevated," the head of the Central Bank said.

"In combination, this situation may increase the risks of a global economic recession, despite the strong data that we have seen recently. For Russia, a slowdown in the global economy means a decrease in demand for our export goods, which could cause additional pro-inflationary pressure," she said.