Demand for consumer loans rose after the central bank’s unexpected rate increase. News agencies reported the move as a reaction to shifting financial conditions.
Banking sources noted that lending rates at large lenders jumped by roughly 20 to 50 percent. Market participants attribute the surge to customers opting for sizable loans at older, lower rates. Analysts warn that higher loan activity can spur economic growth but also increase household debt and stress financial stability if spending remains unchecked.
Izvestia reported that in the first week after August 15, Promsvyazbank processed loan applications approved earlier, with volumes up about 70 percent from the first half of the month and new applications rising by around 10 percent. The bank’s press service indicated demand had returned to pre-shock levels.
Post Bank saw a 1.5-fold rise in both the value and number of illegitimate loans compared with June, while loan applications grew about 30 percent within a single week. Between August 15 and 28, VTB issued 11 percent more loans than in the previous weeks, and the funds disbursed rose by roughly 15 percent. Analysts expect consumer lending to keep expanding this year, though activity may cool if new regulatory measures take effect.
Earlier, a deputy governor of the central bank suggested that an increase in the key rate remains on the table for the next policy meeting on September 15, depending on inflation and financial conditions.
In August, the central bank raised the policy rate from 8 percent to 12 percent in response to rising inflation. Some experts anticipate further increases later in the autumn. Annual inflation in the country rose to about 4.3 percent in July, slightly above the central bank’s 4 percent target, signaling ongoing price pressure without a clear path to a decisive cooling.
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