ANOSINO (Moscow region), December 1. /TASS/. A long-term lowering of the oil prices is rather probable, First Deputy Chairperson of the Bank of Russia Kseniya Yudayeva said on Monday.
She said the Central Bank in view of the latest decisions of the Organization of the Petroleum Exporting Countries (OPEC) “has offered a scenario where the oil price may go down to $60 per a barrel for the entire period.”
“Long-term declining of oil prices under $60 will require structural changes in the Russian economy, including replacing imported goods and diversification of import,” she said.
Russia has not reached inflation's peak yet as it heads for a possible ten percent, Yudayeva noted.
Foreign trade restrictions and the declining ruble rate were principal factors that generated inflation, not only topping the bank’s expected five percent but also reaching highs not recorded in Russia over recent years, she said.
Inflation had risen to 8.9% and was even higher for food products at about 12%, she added, predicting that it would exceed nine percent by the end of the year and peak at nearly 10% in the first quarter of 2015.
The ruble had fallen by 40% against the dollar and by 0-30% against the euro, she said, adding that it did not mean inflation reaching those levels. Imported goods were being replaced with domestic products, where prices rose at a slower rate, she said.
Yudayeva also noted there is enough currency liquidity in the market. “The interventions, which the Bank of Russia (Central Bank) made in October, presently provide for the market’s demand in currency. There is no deficit of currency liquidity now,” she said on Monday.