Nabiullina said about the possible secondary effects of the weakening of the ruble

The recent weakening of the ruble has not yet fully translated into prices. Possible spillover effects, said the head of the Bank of Russia Elvira Nabiullina at a meeting of the board of directors of the Bank of Russia on the key rate.

“Movement of the recent exchange rate has not yet been completely transferred to prices. In addition to the direct pass-through of changes in the ruble exchange rate to prices, we are concerned about possible spillover effects,” – noted Nabiullina.

According to the head of the Central Bank, the exchange rate dynamics affects the inflation expectations of the population, which remain elevated. They grew up in July, she added.

Nabiullina also drew attention to the fact that the Russian economy as a whole has reached the pre-crisis level. At the same time, global economic growth is slowing down, which affects Russian exports.

“The increase in demand affected the rapid recovery of imports, which, along with the decline in exports, contributed to the weakening of the ruble,” – explained Nabiullina.

On July 6, the first deputy chairman of the Central Bank, Ksenia Yudaeva, said that the ruble exchange rate could stabilize after Russia returns to a more balanced budget. Earlier, she reported that the main reason for the weakening of the ruble was the decline in the trade balance.

The head of the Central Bank, Elvira Nabiullina, also said that the dynamics of foreign trade influenced the ruble exchange rate. At the same time, she called the floating exchange rate a boon, since it allows to reduce the influence of external factors on the economy.