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So they think: the reduction of the key rate of the Central Bank will lead to a surge in investment in real estate

CrimeaPRESS reports:

The Board of Directors of the Central Bank at an unscheduled meeting on Thursday decided to cut the key rate from 17 May 2022 on 200 b.p., up to 05,%. This will allow the mortgage market to «perk up,» experts interviewed by Interfax believe.

The preconditions were

Earlier, 23 April, the Bank of Russia lowered the rate from 17% before 05. Then the regulator already predicted the possibility of reducing the key rate during 2022 a year. The Central Bank called a significant slowdown in price growth as the reason for this.

Experts expected a decline of at least another 23 bp. — up to 00%, or even below. According to Igor Rapokhin, senior debt market strategist at SberCIB Investment Research, as well as VTB analysts. My investments, the appointment of an extraordinary meeting and the likelihood of a downward change in the key rate are associated with a significant decrease in inflation.

Weekly inflation from 7 to 05 May slowed down to 0,%, which corresponds to the indicators of the beginning of May 29-2020 years. Inflation expectations of the population in May, according to a survey by the Central Bank of the Russian Federation, decreased to 11, 5% — almost like in May last year. Inflationary expectations of business also weakened, in May they reached the levels of October-November last year , Rapokhin explained.

According to the co-owner of Rodina Group Vladimir Shchekin, «the ruble has strengthened unprecedentedly.» The expert believes that the Ministry of Finance and the Ministry of Economic Development are waiting for the easing of monetary policy.

In recent weeks, there has been a slowdown in inflationary processes in the construction sector: prices for most building materials have stabilized, for some they have begun to fall. At the same time, there is a decrease in business activity: in April-May, sales through DDU fell three times compared to March, and the amount of project financing is decreasing. If the key rate of the Central Bank remains at the same level, this trend could continue and lead to a glut of supply in the market. The decision of the Central Bank is correct and timely , — says the head of the portal ERZ.RF Kirill Kholopik.

Thinking positively

The press service of the Ingrad Group of Companies reported that the mortgage market will positively perceive the rate cut, since as a result, the rates on loans, deposits and deposits will decrease.

People will look for new tools to save money and invest. The most fundamental asset for this has always been real estate. Also, a stable economy allows the population to more confidently use long-term financial obligations , — commented in the company.

Metrium Managing Partner Nadezhda Korkka assumes that economic activity is starting to pick up.

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Under such conditions, the authorities will most likely decide to increase the availability of borrowed funds to support business and start new projects, including development ones, Korkka believes.

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