The reason for Russia's economy slowdown lies in low labor productivity, the country's Central Bank chief Elvira Nabiullina said Thursday.

"Slowdown of the economic growth has been caused, to a significant degree, by structural factors that financial-monetary policy can do nothing to change," Nabiullina said at a government meeting, adding that Russia's labor force reserve has been exhausted by current extensive growth model.

"Unemployment rate remains at historical low. The only way to spur economic growth is to increase labor productivity and mobility," Interfax news agency quoted Nabiullina as saying.

The financial policy can barely contribute to the economic growth, she said, adding that stressing the real economy is the principal part that needs to be reformed.

Only when investors are sure their money are invested into well- structured projects, they would use the loans for development of the real economy, rather than for currency speculations, Nabiullina said. Otherwise, she added, cheaper loans would only speed up capital outflow and inflation.

In September, the Russian Central Bank upgraded its forecasts on inflation in 2014 to 7.5 percent "or higher" from the earlier outlook of 6.5 percent. The bank stressed that for sustainable economic growth in Russia, the annual inflation should not exceed 4 percent.

Meanwhile, Nabiullina said the Central Bank may present more monetary policy drafts to deal with further worsened economic circumstances due to slumping oil prices.

"We are currently trying to work out plans for the scenario of a rapid and more significant decrease in oil prices. There is a possibility to add the plans into the draft," Nabiullina said.

Russia is facing with economic dilemma as Russian ruble continued to depreciate against the U.S. dollar and the euro, as a result of a range of intertwined factors, including Western sanctions and shrinking foreign investment. Endite

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