The largest Russian banks, which are in the top 30 in terms of assets, reduced their deposit rates by 0.5-3 percentage points. This is due to the calculations of the Banki.ru financial market for socialbites.ca.
The decline in the profitability of deposits occurred after the Central Bank cut the interest rate to 17% annually on 8 April.
“A change in the key rate directly affects the deposit rate. After the Central Bank’s decision to cut interest rates to 17% annually, almost all banks from the top 30 on asset basis cut their deposit rates. Including all systemically important credit institutions (Sberbank, Alfa-Bank, VTB, Gazprombank, Sovcombank, etc.). On average, rates fell by 0.5-3 points. “Now the average rate on deposits is 16% per annum,” said Oksana Danilenko, an expert at the Banki.ru analytical center.
It also predicted further declines in key rate. “This means that the process of lowering deposit rates will continue,” Danilenko said.
Central Bank April 8 lowered key rate 3 percentage points – up to 17% per year. The Central Bank of Russia announced its decision by easing some adverse conditions affecting the rigidity of monetary policy.