Russian banks intend to raise rates on deposits and loans after the regulator raised the key rate to 9.5% per annum, when it reached a record level since the end of April 2017. RBC found out how banks plan to respond to the decision of the Central Bank.
Rosbank expects an increase in consumer lending rates by an average of 0.5-1% across the entire market, a bank representative said. The cost of a mortgage will approach 10% in the first half of the year, and under preferential programs it will be 11-12% per annum.
“We do not rule out an increase in rates on our proposals,” Rosbank said.
Absolut Bank intends to raise mortgage rates next month. They will rise to 12-13% if the key rate reaches 11%, the publication specified.
Alfa-Bank, Rosbank, Moscow Credit Bank (MCB), Dom.RF Bank, Post Bank and Absolut Bank are planning to increase the yield on deposits, bank representatives told RBC.
According to a representative of Promsvyazbank, “average market rates on deposits can reach double-digit values and rise to 10-11% by the beginning of March.”
Absolut Bank predicts the growth of deposit rates to double digits in the next one or two months, they will remain until the end of the year. Maxim Stepochkin, head of the Savings department at VTB, believes that such proposals will most likely only apply to short and medium-term placements.
On February 11, the Board of Directors of the Bank of Russia, at its first meeting this year, raised the key rate by 1 percentage point to 9.5% per annum, the regulator’s press service reported. The Central Bank makes such a decision for the second time in a row. Previously, it increased the rate in a similar way at the end of 2021. In general, since March last year, the Central Bank raised the rate for the eighth time in a row.