The expert predicted the dynamics of deposit rates after the key rate cut

The trend towards a decrease in deposit rates in Russia will accelerate after a reduction in the key interest rate. The Director of Macroeconomic Analysis at DOM Bank told Izvestia about this on June 9.Russian Federation Zhanna Smirnova.

"We believe that the key rate will decrease slowly and reach 17-18% by the end of the year. We do not expect a further noticeable expansion of the spread of deposit rates with CS, therefore, on average in the market at the end of the year, the deposit supply will be near the range of 15-17%," she said.

According to her, deposit rates are affected not only by the value of CS itself, but also by the expectation of further dynamics, as well as the situation with regulatory liquidity in the banking sector.

"For example, in December, interest rate expectations and the liquidity of the sector strongly influenced the size of deposit rates. The situation with regulatory liquidity and inflation dynamics has improved recently. This is forming a trend towards lower rates, which we have been observing recently," the expert explained.

Minus to plus: banks will lower loan rates after the Central Bank's decision

On June 6, the regulator unexpectedly reduced the key rate for the first time in three years to 20%

On June 6, the Central Bank of Russia lowered its key rate to 20% after a long period of tight monetary policy. According to the Central Bank, domestic demand still outstrips the possibilities of expanding the supply of goods and services, but the Russian economy is gradually returning to a balanced growth trajectory.