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Artificial mortgage rate reduction is dangerous, says Putin

NABEREZHNYE CHELNY, December 13. /TASS/. The mortgage lending rate should be reduced but not artificially, Russian President Vladimir Putin said on Friday when meeting Kamaz engine plant workers.

"The work should be done but it is dangerous to make it artificially," Putin said. "The mortgage rate, as any bank’s rate in general, is linked to specific conditions, to inflation in the first instance," the President said.

Mishandling of interest rates may influence on inflation in reverse order, Putin noted. "This is a delicate thing, which depends on economic growth rates, on quality of economic growth," he added.