Banks lower deposit rates after reducing the key rate to 20%

The largest banks have reduced deposit rates for periods from three months to six months, dropping them below 19% for the first time since August 2024. Conditions worsened for more than half of the top 10 players, according to data from credit institutions' websites. For some market participants, the yield on short deposits is close to 17.5%.

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%

At the same time, annual deposit rates decreased by 0.5 percentage points to 17.6%, Izvestia found out. This means that banks expect further rate cuts by next June.

Despite the fact that deposit yields have already gone down, banks are in no hurry to lower loan rates. This is a fairly common situation after the easing of the PREP — for some time, market participants continue to issue loans with the same value, while deposits become less profitable.

The Central Bank lowered the key rate by 1 percentage point to 20% at a meeting on June 6. The last time the Bank of Russia eased monetary policy was three years ago, in 2022. The main argument in favor of the regulator's decision now is the sharp slowdown in inflation in April. Price growth decreased to 6.2% year-on-year after 8.2% in the first quarter.

Read more in the exclusive Izvestia article:

Percentage ratios: the yield on short deposits dropped below 19%