Nabiullina: Oil prices dropped because of Trump

Baku. 12 May. REPORT.AZ/ World oil prices could fall due to the policy of US President Donald Trump.

Report informs citing the Rambler News Service, governor of Russia's Central Bank Elvira Nabiullina stated.

Senior banker said that Trump’s expansionary fiscal policy has already led to an increase in inflation expectations and profitability of US government bonds. This, in turn will lead to rapid normalization of monetary policy, i.e will make it necessary to increase interest rate. Subsequently, dollar will rise, oil prices will drop and the flow of capital from developing countries accelerate.

Notably, next meeting of US Federal Reserve System (Fed) will be held on 13-14 June. At present, discount rate in the United States makes 0,75-1%. Fed predicts interest rates to rise to the level of 1,25-1,50% this year.