25 Aug 2021 13:45

Sberbank doesn't rule out rates growth on retail market in Sept, but this to be insubstantial - dep chair

MOSCOW. Aug 25 (Interfax) - Growth of rates could occur on the retail market in September, but this will not be substantial, Deputy Chairman of the Sberbank Executive Board Kirill Tsarev told Interfax in an interview.

"I think there will still be some correction of rates, but not proportional to the key rate change. The question is what is going to happen next to the money market, since the Central Bank has not ruled hiking the rate further. We'll see. I think we could see correction on the market in September, but I don't think it will be substantial," Tsarev said.

He said banks had already partially reflected the rise of the Bank of Russia's key rate as this had been anticipated.

The Central Bank of Russia took its first step toward normalizing the monetary policy in March 2021, when it hiked the key rate 25 basis points to 4.5% from the historical minimum of 4.25%. In April, the regulator raised it another 50 bps to 5.0%, then by 50 bps again in June to 5.50%, and by as much as 100 bps in July, to 6.50%.