Russia’s largest lender Sberbank expects the Central Bank to raise its key interest rate to as high as 23% later this month in its fight against rising prices, a senior executive said Monday.
“There’s a high probability of a rate hike by either one or two percentage points because we see that inflation is still relatively high,” Sberbank’s Deputy Chairman of the Board Kirill Tsarev was quoted by the state-run RIA Novosti news agency as saying.
The Central Bank raised its key rate to a record-high 21% in October, with policymakers signaling a high likelihood of further rate hikes in the future.
Central Bank Governor Elvira Nabiullina later warned of “more drastic changes” in monetary policy as defense-driven inflation soars in the third year of Russia’s invasion of Ukraine.
Policymakers are set to meet again on Dec. 20 to decide on the bank’s next rate adjustment.
The Central Bank’s tight monetary policy has led Russia’s second-largest lender VTB to reduce its loan portfolio and profit expectations, VTB CEO Andrei Kostin told Reuters earlier Monday.
VTB’s 2025 profit forecast will decrease to 400 billion rubles ($3.77 billion) from 550 billion rubles ($5.18 billion) this year as a result, he said.
“We simply won’t be able to issue more loans physically. And, of course, our income will no longer be as high,” Kostin was quoted as saying.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
