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Growth of loan rates will be lower than inflation rate growth - Bank of Russia

Speaking about the cost of housing, the head of the regulator made a forecast that the growth in housing prices would significantly slow down

MOSCOW, December 27. /TASS/. The Bank of Russia registers a slight increase in mortgage rates, but the growth in loan rates will be lower than the growth of inflation and the key rate, head of the Bank of Russia Elvira Nabiullina said in an interview with the Russia-1 TV channel.

"Of course, there is a slight increase in mortgage rates. But I would like to note that the growth of interest rates on loans will be less than, for example, the growth of inflation, less than the growth of the key rate," she said.

Speaking about the cost of housing, the head of the regulator made a forecast that the growth in housing prices would significantly slow down.

"We see that the housing supply is now growing, so, at least, the growth in housing prices should seriously slow down," she explained.

According to the Economic Development Ministry’s review of the current price situation, inflation in Russia from December 14 to 20 accelerated to 8.22% in annual terms against 8.11% a week earlier. The key rate of the Bank of Russia is currently at 8.5%, which is the highest one since 2017.

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