MOSCOW, January 22. /TASS/. It will be difficult for the Central Bank to keep inflation under control if the government conducts a risky budgetary policy, the bank’s head Elvira Nabiullina said at the expanded board of the Ministry of Finance.

"Monetary policy and fiscal policy are interrelated. If there is an unbalanced budget and the uncontrolled growth of public expenditure, it will cause the growth of long-term interest rates and inflation expectations. In these circumstances, it will be harder for the Central Bank to keep inflation under control," - she said.

According to Nabiullina, the low level of budget deficit, inflation and of its national debt should serve as a base for development of the country's economy.

"Structural measures should not harm but should be based on macroeconomic stability as the current situation presents a general challenge for budget and monetary policy. This challenge is to retain macroeconomic stability amid sharply worsening situation on commodity markets," she said, adding that macroeconomic stability means "low deficit, low debt and low inflation," - she said.

Nabiullina also dwelled upon dynamics of oil prices saying oil price rebounds are possible though one should not expect highs of earlier days.

"The situation on the oil market is the key factor for our economy, and here [Finance Minister] Anton Germanovich [Siluanov] is right, oil price rebounds are possible though one should not expect them [oil prices] to return to the highs of last years," she said.

She also pointed out that the dependence of the Russian economy and the ruble’s exchange rate on oil prices is declining.

"The dependence of the economy and the ruble’s exchange rate on oil is declining. But of course we need structural efforts to diversify economy so that the dependence on oil prices will be going down in the future as well," she said.