Nominal interest rates in Russia saw a significant decline in June, but the drop in real yields was less pronounced as price growth slowed. Household inflation expectations showed uneven changes and remained high.
Interest rates fell across almost all segments of the credit and deposit market during June. Despite this, bank lending conditions continued to be tight. As a result, both credit growth to the economy and money supply expansion were moderate. Preliminary data suggest that these trends in interest rates and credit activity persisted into July.
Further information can be found in the Bank of Russia’s information and analytical commentary on Monetary Conditions and Monetary Policy Transmission Mechanism.
