Gref: the key rate of the Central Bank in 2016 could fall below 10%

Gref: the key rate of the Central Bank in 2016 could fall below 10%


In 2016, the banks will begin to recover, will the competition for normal borrowers, the head of Sberbank German Gref. He suggested that rates will reach the pre-crisis level.

MOSCOW, 9 Dec. The key rate of the Central Bank of the Russian Federation in 2016 could fall below 10% and even reach pre-crisis level, said the head of Sberbank German Gref.

“Bets, which sets the Central Bank, will continue to fall. Today we see the excess liquidity in the banking sector. Next year, banks will begin to recover, will the competition for normal borrowers, rates will fall,” said he, speaking in the Federation Council.

The key rate of the Central Bank of the Russian Federation in the period until 14 September 2012 stood at 5.25% per annum, then nearly a year and a half, until March 3, 2014, at 5.5%. Subsequently, it gradually increased to 10.5% and from 16 December 2014 the regulator has sharply raised the rate to 17%, explaining his decision by the need to limit significantly increased at the time of devaluation and inflation risks. For 2015 the Central Bank cut its interest rate, bringing it to 11% since 3 August.

“I think that next year we will see rates below 10%. Even, maybe rates will come pre-crisis level. This is quite normal with inflation next year, according to our estimates, 7.5-8.5%,” — said Gref.