The increase by the Central Bank of the key rate will not help in the fight against inflation, but will lead to an increase in the cost of loans. This opinion was expressed on Friday, December 17, by the expert of the Russian Institute for Strategic Research, candidate of economic sciences Mikhail Belyaev.
“Naturally, consumer credit will increase, and it will rise quite seriously. All rates related to the loan will increase. Not only to people, but also to industrial enterprises, “- said in a conversation with the TV channel”360“.
The expert added that the mortgage will increase, as well as slightly – the rates on deposits.
“Even more difficulties for people will be caused by the fact that the increased key rate to 8.5% – it makes it difficult to practically prohibitive level the work of industrial enterprises, that is, companies from the service sector and industry,” the economist stressed.
Belyaev believes that people will have to postpone plans to raise wages and create jobs for some time, and also have to wait with the development of the economy and filling the budget.
“The Central Bank explains this by the fact that it is trying to fight inflation. Inflation, in his opinion, is the biggest evil that can exist and threaten the well-being of the population. But the fact is that we have non-monetary inflation. In our country, inflation is rooted not in the monetary sphere, but in the organization of trade and other industries where large companies dictate their will and their ideas about prices, ”Belyaev emphasized. He added that the rate hike is not reflected in inflation in the short term.
Earlier that day, the Bank of Russia raised its key rate for the seventh time in a row, reports RT… It was increased by 1 percentage point to 8.5%, the highest since 2017.
Also, the head of the Central Bank Elvira Nabiullina said that rush purchases of goods that have risen in price may be a wrong strategy, because in the future, prices for these goods may decrease. NSN…
On the eve of the decision regulator published a statement from which it follows that inflationary expectations of the population remain high.
On December 13, Izvestia published a consensus forecast, according to which the largest banks expected the Central Bank’s key rate to rise to 8.5%. According to analysts, in order to curb inflation and return it to the target level of 4%, the regulator must “make loans in the economy more expensive and cool consumer and investment demand.” According to financiers, the growth of interest rates in the economy is already bearing fruit: consumer lending is slowing down, citizens have begun to increase their savings on deposits. However, the risks of “unwinding an inflationary spiral due to heightened expectations of the population and business still remain.”
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