The key rate is at a record high of 21% per annum. Because of this, loans have become super-expensive: market rates on mortgages are denmark telegram data around 25%, and on cash loans – above 30% per annum. Deposits, however, have also become record-breakingly profitable: banks give more than 20% per annum on deposits.
The current key rate is even higher
than in the spring of 2022. Let us recall that then people rushed to withdraw money and buy currency in a fit of emotion, and the Central Bank sharply raised the rate from 9.5% to 20% so that people would not empty ATMs and return their savings to bank deposits.
that on December 20, after the meeting of the Board of Directors, the Central Bank will raise the key rate even more – for example, to 23% per annum.
Why did the Central Bank raise interest rates in the economy so sharply? Will this lead to a crisis and mass bankruptcies? And was it possible to act differently? KP economic observer Evgeny Belyakov spoke about this and much more with Andrey Gangan, director of the monetary policy department of the Bank of Russia.
“We need to make savings profitable
— The Central Bank has become very tough. Many do not understand what this is connected with. Can you explain in simple language what is happening and why the Central Bank is doing what it is doing?
— Yes, the key rate is high now, but the facilitating customer interactions and transactions reasons are not the same as in 2022. Then we responded with a high rate to external factors — we needed to ao lists cope with the increased demand for cash, maintain financial stability in the context of sanctions and huge uncertainty, reduce consumer hype and prevent inflation from gaining momentum.