CB: the level of Bank interest rates limit the growth rate of lending

MOSCOW, 30 Oct. Credit and Deposit rates of the Russian banks, on the one hand, encourage the population to keep savings in rubles, but, on the other hand, do not contribute to the increase in lending, according to a press release from the Central Bank following the meeting of the Board of Directors.

The Bank of Russia on 30 October decided to keep the key rate at 11% per annum.

The report States that the moderating influence on prices also have a moderately tight monetary conditions, the growth rate of money supply (M2) remained at a low level. While under the influence previously adopted by the Bank of Russia of decisions on reduction of the key rate tends to decrease loan and Deposit rates.

“Nonetheless, Deposit and loan rates remain at a level that, on the one hand, contributes to maintaining the attractiveness of savings in roubles on the other, along with maintaining a high debt load and increased requirements to the quality of borrowers and collateral, is a low factor in the growth of lending,” — said the Central Bank.