The State Duma calls on the Central Bank to reduce the key rate. And significantly

With an extremely high key rate, the debt burden of the population is growing rapidly, Parfyonov noted. At the same time, many citizens in difficult financial conditions take out microloans.

At the same time, the number of bankruptcies of individuals is growing. In the first half of the year, the number of Russians declared bankrupt increased by 17% and approached 200 thousand, the deputy emphasized. These and other negative factors are justified by the need to combat inflation. For this reason, the regulator increases the key rate. But this is not a solution, since the key rate only affects inflation to some extent, Parfyonov noted. In his opinion, stimulating the production of real products, which would saturate the consumer goods market and reduce price pressure, would have a better effect.

The deputy calls on the head of the Central Bank to seriously reconsider its approaches. It is necessary to reduce support for banks and give the population and the real sector of the economy more opportunities. This is possible with a low key rate — at the level of 4-7%.

Earlier, the Central Bank said that with a key rate of 7.5%, mortgages will not become cheaper, and inflation will become double-digit. Deputy Chairman of the Bank of Russia Alexey Zabotkin is confident that the Central Bank should have tightened monetary policy faster.

Let us remind you that in September the Central Bank increased the key rate to 19% per annum. The next meeting of the Board of Directors of the Central Bank will be held today, October 25. This will be a key meeting at which the regulator will present a medium-term macroeconomic forecast. Market participants expect the Central Bank to raise the rate by 1-2 percentage points.

According to the Bank of Russia’s base scenario, the key rate will drop to 7.5–8.5% per annum no earlier than 2027.

source: CIAN