Read about the consequences of the Central Bank's decision to leave the key rate unchanged in the RIA Novosti article.
The Board of Directors of the Central Bank of the Russian Federation decided to leave the key rate at 21% at a meeting on February 14. Read about how this decision will affect the Russian economy, business and citizens in the RIA Novosti article.
How will the Central Bank's decision on February 14 affect the economy?
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High rates continue to limit economic activity in the country, and from this point of view, maintaining a balance between inflation control and pressure on the rate of economic growth is becoming an important task for the regulator, believes Vladimir Malinovsky, chief analyst at the Center for Investment Analytics of Rosgosstrakh Life Insurance Company.
The pace of economic growth in Russia will continue to slow, the guatemala mobile database lending market will cool, and the volume of funds in Russian bank deposits will continue to increase, believes Freedom Finance Global analyst Vladimir Chernov.
The Russian economy as a whole feels difficulties with such high interest expenses of companies to service their borrowings, says Deputy Chairman of the Board of SDM-Bank Eduard Lushin. On the other hand, high interest rates contribute to an increase in the savings activity of the population.
How the Central Bank's decision on the key rate will affect business
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“The cost of servicing the companies’ loan portfolio has increased significantly in the last year, which has had the greatest impact on the most heavily indebted enterprises, which have begun to spend a large portion of their earned operating profit on interest, and some have even gone ‘into the red’,” notes Malinovsky.