Major Russian banks again cut rates

Major Russian banks again cut rates

MOSCOW, July 4. /TASS/. Russian banks after the financial regulator has continued to reduce rates on credit products. The flagship of the market was Sberbank, which announced the reduction of interest rates on credit cards by 2-6 percentage points. After him about the decline reported and other large credit institutions, in particular the agricultural Bank and “the Russian capital”. Plans to lower interest rates on the loan issued by cash, TASS also said in the Post Bank.

The Decision Of The Bank Of Russia

Lower rates from the credit institutions associated with the policy of the Central Bank of Russia.

So, the Board of Directors of the Bank of Russia at the March meeting for the first time from September 2016 has decided to reduce the key rate by 25 basis points to 9.75%. Then at the meeting in April, the regulator cut the key rate by another 50 b. . p. to 9.25% per annum, while the experts had expected less rapid easing of monetary policy. Its decision, the Central Bank explained the slowdown of inflation, the value of which is already close to the target level of 4%. In June, the regulator decided to lower the key rate by 0.25 percentage points to 9% per annum. Then the head of the regulator Elvira Nabiullina noted that the scope for rate cuts in the second half of 2017 remains, however, the regulator does not exclude a pause in monetary policy easing. While Nabiullina warned that the monetary policy of the Bank of Russia will remain moderately-hard for several years, until inflation expectations are not fixed at a stable low level.

The trend in the decline

Monday on reducing the rates reported by the savings Bank. So, the credit institution from July 1, reduced rates on most credit cards are 2-6 on the PP As explained by Executive Director – head of development Department of credit cards of Sberbank Igor Kovalyov, improving the conditions of the credit card has allowed “the trend in the reduction of the key rate of the Central Bank.”

This is not the first reduction of interest rates from the savings Bank. So, on June 1, Sberbank has lowered interest rates on housing loans for the purchase of new buildings, and from June 5 – for the rest of the underlying mortgage products. Then the head of Sberbank German Gref noted that this reduction is not the limit to the end of the year, maybe the rates will be reduced more.

On the path of reducing interest rates matter and the Agency for housing mortgage lending (AHML). So, on Monday, June 3, AHML reported a decrease in mortgage rates by 0.75-1 percentage point. Now the base rate amounts to 9.75% APR.

About reduce mortgage rates on the AHML standards announced Monday also Bank “the Russian capital”. So, on a 0.75-1 percentage point rates were reduced in five cities where the pilot project to issue mortgage loans from the balance sheet of the seller: in Moscow, Voronezh, Nizhny Novgorod, Rostov-on-don and Krasnoyarsk. Now the minimum bet depending on the initial contribution to the pilot project starting from 9,5% per annum, and for large families the rate will be further reduced by 0.25 percentage points

Tuesday followed Rosselhozbank. Thus, the Bank reported a decline in rates on mortgage housing loans. The average rate reduction by 2 percentage points, according to the website of the credit institution.

Plans to reduce rates on credit cash TASS also said the Vice President, Director of retail business development Mail Bank Grigory Babadzhanyan. Mail the Bank will routinely continue to optimize the cost of credit products. In particular, in the nearest future, the minimum rate on cash loans will be reduced from 16.9% to 12.9%, he said.

Other tactics

Gazprombank, in turn, to increase the attractiveness of its products has decided to raise rates on the most popular fixed-term ruble deposits. So, for those deposits with a maturity from 6 to 12 months, the Bank raised rates by 0.1-0.7 p. p. the maximum rate of Deposit (7.8 per cent) can receive up to 31 August in the framework of “Gasprombank – Holiday”.

There are no plans to reduce rates, particularly on credit cards, TASS reported the press service of VTB. Today rates on credit cards for retail business of VTB and VTB24 is one of the best on the market, said the press service. “We are closely monitoring the situation, but at the moment to change rates are not planned”, – said the Agency interlocutor.

However, a month ago, the VTB group has decided to reduce mortgage rates to 10%. So, on June 7, the General decline in mortgage rates VTB24 and retail business of VTB Bank amounted to 0.75 percentage points for finished housing and 0.4 percentage points for new buildings.