"In Russia, as the president announced yesterday, the non-working days, which started this Monday, last through April 30. Many regions imposed additional restrictions on economic activity. Unfortunately, these measures, which are absolutely necessary to combat the epidemic, will inevitably affect the economy negatively," Nabiullina said.
"The experience of other countries shows that a month of a country-wide quarantine can cost the economy 1.5-2 percent of the full-year GDP, but the cumulative effect will depend on how long restrictive measures will be in effect," she added.
Inflation in Russia accelerated, as expected, but the full-year inflation is still significantly lower than 4 percent, Nabiullina said.
“We will monitor the price growth, and the data for the last weeks of March confirms our opinion that the observed surge will be short-term and will not have a significant impact on inflation expectations," she said.
Additional measures to ensure Russia's financial stability are not required now, but the central bank is ready to introduce them if necessary, she said.
The Bank of Russia sees the potential to lower its key rate during the current year and will choose the right moment for this, Nabiullina said.
On March 20, the Bank of Russia decided to maintain the key rate at the level of 6 percent per annum.
