The Board of Directors of the Central Bank of the Russian Federation may increase the key rate to 14% or 15% annually at its meeting on October 27. This assumption was made by economist Andrei Barkhota.
The expert noted the following in his interview: “Izvestia”According to Central Bank statistics, the average maximum deposit interest lags 2.75-3 points behind the basic interest rate and does not exceed 10.2%. However, mortgage interest rates have exceeded 14.5%, indicating that banks are trying to increase their margins. As a result, Barhota believes that the Central Bank may increase the interest rate to increase the effectiveness of monetary policy measures.
Depending on the economist’s opinion, the board may decide to raise the interest rate by 1-2 percentage points. This includes weakening inflation expectations, that is, reducing them to 14-15% with the potential to rise by the end of 2023. This could lead to an increase in mortgage rates and an overhaul of subsidized programs.
Previously reportedHe noted that Russian banks also expect an increase in the key interest rate in October.