The recent climb in interest rates is pushing banks to roll out deposit and savings offers ahead of the holiday season. This viewpoint comes from Gennady Chausov, who leads the liability and commission products service at Post Bank, in an interview with socialbites.ca.
He notes that these promotions will likely resonate strongly with customers as the holidays approach. In November, the market could see a wave of such offers. He forecasts annual rates in the neighborhood of 14 to 15 percent on certain deposits, along with a general uptick in both deposit and loan rates in response to another rise in the key rate. Yet, he emphasizes that the pace of increases is not expected to be as aggressive or proportional as the initial rate hikes. A sharp rise in loan rates, for instance, could restrain lending activity and slow the flow of new loans to the public.
In a move that continues a multi-year escalation, the Central Bank of the Russian Federation once again raised the policy rate by 2 percentage points, bringing it to 15 percent annually. This marks the fourth consecutive year of increases. The current cycle started on July 21, when the rate was first raised by one point, climbing to 8.5 percent. A subsequent surge added 3.5 percentage points, lifting it to 12 percent in an extraordinary meeting. Another adjustment followed on September 15, pushing the rate to 13 percent. These successive actions illustrate the central bank’s ongoing strategy to tighten monetary conditions amid evolving economic pressures.
Typically, Russian banks align their deposit and loan pricing with the regulator’s decisions. Mikhail Zeltser, a candidate of Economic Sciences and a stock market expert with BCs World of Investments, described to socialbites.ca that when the central bank raises rates by one percentage point, banks tend to raise the cost of credit and the yield on deposits by a similar margin. For example, immediately after the September 15 decision, deposit rates in several Russian banks jumped by about 0.5 to 1 percentage point, resulting in typical yields around 11 to 12.97 percent for some accounts. This illustrates how quickly policy moves can translate into consumer-facing rates across the financial system.
Observers have noted that the sequence of hikes suggests continued monitoring of inflation and growth indicators. The trajectory of rates will likely influence loan approvals, consumer borrowing, and the attractiveness of various savings products in the months ahead. Analysts and market watchers often point to the regulator’s statements and economic data releases as key drivers of how banks set their terms, balancing the need to attract deposits with the imperative to manage risk and liquidity in a volatile environment. This dynamic is a reminder that small policy shifts can ripple through the financial landscape, affecting everyday banking decisions for households and businesses alike.
Earlier reports from socialbites.ca explored what Russians might expect from the next rate adjustment and how lenders could respond with promotions, incentives, and new product offerings. The conversation around rate changes continues to be a central theme for savers and borrowers as they navigate a shifting monetary backdrop.