The head of VTB questioned the possibility of reducing the key rate to the end of the year


Moscow. November 18. The head of VTB Andrey Kostin inclined to believe that the Central Bank will not lower key the end of the year, although did not rule out that a decrease of 0.5 percentage points is possible.

“I doubt,” said Kostin reporters on Wednesday in Manila on the sidelines of the APEC summit, commenting on the question of whether the Central Bank in December to cut rates.

“I don’t know. I think either one half will, or will not change,” he added.

“Because at the end of the year is always a surge of money into the economy and pressure on inflation, so the Central Bank may refrain from taking any action until early next year. In the beginning of the year, I think. And I don’t know – a maximum of one-half and I’m not sure,” – said Kostin its position.

Commenting on the question of how the Central Bank plans for printing before the end of the year trillion rubles will affect the economy, the head of VTB said, “Fine.”

“I think a substantial impact on inflation will not be. CB has its own calculations in the framework of inflation targeting. If they release this within a certain amount of money, so they take that into consideration. Itself the money supply does not necessarily directly affect the inflation,” he said.

Kostin did not agree with the position of the head of Sberbank German Gref that Russia has large-scale banking crisis.

“I always shout that there is no crisis, why ask me? Far from Manila, a 10 hour flight, but when I was flying, a large-scale crisis was not”, – said Kostin.

“The difficulty is, a lot of them, but with liquidity difficulties. Someone has problems with capital, there are difficulties, of course, at a profit, there is a high refinancing rate, which hurts the banks. But the overall situation is totally under control”, – said the head of VTB.

As reported, Gref on Tuesday assessed the current situation in the market as large-scale banking crisis.

“What we see now is a large-scale banking crisis”, – said Gref to journalists. According to him, over the past 20 years is the most severe and prolonged crisis in the banking system.