Russia’s Central Bank defends interest rate hikes amid mortgage growth

In a recent press conference following the meeting of the Bank of Russia’s Board of Directors, Elvira Nabiullina, the central bank’s head, delivered a series of decisive statements. Nabiullina justified recent hikes in the key interest rate as essential measures, dismissing ongoing chatter about the inaccessibility of credit in Russia’s economy as overstated, Report informs via BNN.

Nabiullina underscored the substantial growth in Russia’s mortgage portfolio, which has risen by an impressive 32% over the past 12 months. She also shed light on the steep 90% surge in the prices of new buildings over the last three years.

Recognizing the current annual inflation rate that overshoots 7% as far from insignificant, Nabiullina acknowledged the country’s economic realities. Moreover, she revealed that Russians returned a hefty 200 billion rubles to bank deposits in the months of September and October.

The Central Bank projects that it will be primed to lower the key interest rate next year once the annual inflation rate nears the target of 4%. This move is expected to ease some of the economic pressures currently experienced by Russians.

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