Nominal interest rates in most segments of the financial market declined in July and August, according to a recent update. The Bank of Russia reported that inflation expectations among households and businesses remained high during this period.
Credit and deposit rates at banks also fell as a result of reductions in the key rate. In July and August, monetary aggregates grew more rapidly, supported by an increase in corporate lending activity and moderate growth in retail lending.
The Bank of Russia has provided additional analysis in its commentary titled “Monetary Conditions and Monetary Policy Transmission Mechanism.”
