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- October 20, 202616°
- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,151.20-0.21%
- INTEREST37.00%-1.00
- BITCOIN81,767-0.30%
- October 20, 202616°
Russia's Central Bank cuts interest rates but loan rates have not yet fallen
Despite the Central Bank's rate cut in Russia, banks are not rushing to lower loan rates. Experts say more favorable conditions may emerge towards the end of the year.
Despite the Russian Central Bank lowering its key interest rate, banks in the country are not reducing loan costs at the same pace. Yuri Okishev, General Director of Auditorium CG, assessed whether it is more advantageous to take out a loan now or to wait under the current conditions.
According to information provided by Okishev, the average interest rate on consumer loans stands at 33.24 percent annually, while mortgage rates range between 16 and 22 percent.
Year-end expectations
The expert predicts that the key interest rate could fall to 11-12 percent towards the end of the year, which would also be reflected in loan rates. The market expects mortgage rates to drop below 15 percent during the winter months.
Inflation and new regulations
Inflation, which stood at 5.6 percent as of mid-June, stands out as a factor limiting the reduction in loan costs. Additionally, starting July 1, the Central Bank's new limits restricting lending to individuals with high debt burdens come into effect.
Okishev stated that if the need for a loan is not urgent, it would be more advantageous to wait a few months, as conditions will improve during this period. He added that loans previously taken out at high interest rates could be restructured if the interest rate difference exceeds 2 percent.
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