Banks are increasingly raising deposit rates due to accelerated inflation in order to keep depositors: on average, according to the Central Bank, in the 10 largest banks in terms of household funds, they grew to 5.3% from 5.1% over the past 30 days. Because of this, their funding costs will increase, Moody’s analysts write in their review.
After five years of low inflation and lower interest rates, which benefited Russian banks and led to a boom in the mortgage market, the trend reversed. The growth of the average maximum deposit rate accelerated: by 0.2 pp over the last 30 days versus 0.17 pp over the previous 30 days. This indicates that banks continue to improve the attractiveness of deposits for clients to counter inflation, Moody’s analysts write. It accelerated in annual terms from 3% in June last year to 6.5% in June 2021. This is the highest figure since August 2016.
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