As inflation slows down, mortgage interest rates in Russia will fall. This was stated by the head of the Central Bank of the Russian Federation, Elvira Nabiullina, at a meeting of the Financial Market Development Council under the Federation Council. DEA News.
According to the Central Bank Governor, reducing mortgage interest rates is one of the main goals of the regulator’s policy. Nabiullina noted that with the easing of the current rise in inflation, mortgage interest rates will inevitably fall.
“As the current inflation rate slows down, mortgage interest rates must inevitably fall, this is the goal of our policy,” the head of the Central Bank of Russia stressed.
He also recalled that in the period before the coronavirus pandemic, mortgage rates were falling steadily and reached 8-9 percent if concessional government programs were not used.
The Central Bank raised the annual interest rate from 16 percent to 18 percent last Friday, while also raising its 2024 inflation forecast from 4.3-4.8 percent to 6.5-7 percent. Expectations for GDP growth this year were also revised upwards from 2.5-3.5 percent to 3.5-4 percent.
Experts It has been said About the consequences of the Central Bank’s interest rate increase to 18 percent.