Dynamics of the key interest rate insensitive for Sberbank as Russia’s largest Bank have minimized their borrowing in the Central Bank, said Deputy Chairman of Sberbank Alexander Morozov.
MOSCOW, 21 Jan. The Bank of Russia in the current difficult economic situation is unlikely to reduce the key rate, said Deputy Chairman of Sberbank Alexander Morozov.
“As to the policy of the regulator, waiting that the Russian Central Bank today will have less flexibility, and we should not expect any immediate cuts rates,” Morozov said in a conference call with analysts.
In his opinion, to reduce the key rate will take more time. “Frankly, as for much of the year, I expect that rates will be unchanged or virtually unchanged. Can be quite small bursts, but without any reduction,” says financial Director.
He noted that the dynamics of the key interest rate insensitive for Sberbank as Russia’s largest Bank have minimized their borrowing in the Central Bank.
During 2015, the Central Bank gradually cut its interest rate, bringing it in August to 11% from 17% in December 2014. But then the regulator was forced to “freeze” rates due to inflation. The next meeting of the Board of Directors on interest rate policy will be held on January 29.