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Sber not ruling out key rate keeping by Bank of Russia in September

It is impossible to endlessly increase the key rate because the majority of agents starts providing for high rates in all the business plans, stretching the high inflation period even further, Taras Skvortsov noted

VLADIVOSTOK, September 4. /TASS/. Sber does not rule out that the Bank of Russia will keep the key rate intact at the meeting on September 13, Senior Vice President Taras Skvortsov told reporters on the sidelines of the Eastern Economic Forum (EEF).

"I would not exclude a variant of keeping the key rate. This is because we see a series of signals last weeks that demonstrate that measures of the Central Bank and the government to gear inflation down start bearing fruit. We see the GDP growth rate slows down; mortgage loan’ extension decreased. All that are factors contributing to inflation lowering," Skvortsov said.

It is impossible to endlessly increase the key rate because the majority of agents starts providing for high rates in all the business plans, stretching the high inflation period even further, he noted.

"Certainly, we assume the increase. If it takes place, it will not most probably have a significant effect for our indicators this year. We addressed this scenario in our forecasts," the banker added.

The Bank of Russia lifted the key rate on July 26 from 16% to 18% per annum, for the first time since December 2023.