💣 Russia🇷🇺: Banks adjust deposits and consumer loans amid rising key rate

💣 Russia🇷🇺: Banks adjust deposits and consumer loans amid rising key rate

Analysts and economists from leading banks predict that the key rate will increase to 22-23% in December, with seasonally adjusted annual inflation already reaching 9%. What should consumers do ⁉️

⏩Since early November, retail banks have raised deposit rates by 0.4 to 0.9 percentage points (pp), with a cumulative increase over the last month of 1.8 to 2 pp. Simultaneously, unsecured consumer loans have also become more expensive by 0.6 pp, rising nearly 1 pp after the last Central Bank meeting.

⏩ During this period, banks such as VTB, Gazprombank, Alfa-Bank, PSB, Rosselkhozbank, Post Bank, UralSib, and others adjusted upward the interest rates on deposits of various terms.

⏩ The average maximum rate on deposits in these institutions reached 22%, compared to 21.33% at the beginning of November.

⏩ In the first two weeks of November, 9 out of the top 20 banks adjusted the average total cost of credit (PSK). Unsecured loan rates rose by 1.04 pp, reaching an average of 31.97%, while secured loans saw a slight decrease of 0.07 pp, settling at 27.67%.

⏩ Meanwhile, cash loan rates have also experienced significant increases.

⚠️ In the coming months, deposit rates are expected to continue rising, albeit more moderately, ahead of the next Central Bank meeting, with increases of up to 1 pp. Additionally, banks will offer holiday promotions in December that may mask these hikes with seasonal deals.

👀 However, these high costs will lead to a contraction in the retail consumer credit market, directly impacting household financing capacity.

#news #Russia

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