Russia’s Ministry of Finance said it has no plans to raise interest rates on subsidized mortgage programs after the unexpected increase in the interest rate on August 15. This information is in the newspaper “News” referring to the press service of the ministry.
Natalia Milchakova, one of the leading analysts at Freedom Finance Global, noted that the Ministry of Finance’s statement shows that they do not see current interest rates high enough and expect them to fall instead of rising in the future. He also added that rates on concession mortgage programs could be increased by 0.5-1 percentage point in 2024, but that the more likely option is to abolish government-sponsored programs altogether.
Finam analyst Igor Dodonov told Izvestia that with a key interest rate of 12 percent, authorities could find funds to subsidize preferred mortgage rates. However, if the Central Bank of Russia (CBR) continues to tighten its monetary policy rapidly, the possibility of an increase in interest rates within the scope of government programs will increase.
Previously, the Central Bank of the Russian Federation harshly raised up to 12% key rate in an unscheduled meeting.
Source: Gazeta
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