In May, nominal interest rates decreased, but the renewed decline in inflation expectations helped maintain the tightness of monetary conditions. In June, the reduction in nominal rates became more significant.
Recent estimates indicate a further decline in loan and deposit rates in June. Credit activity in the corporate and retail segments remained moderate, containing money supply growth. The dynamics of the monetary aggregates in June were comparable to changes in May.
More details are available in the Bank of Russia’s information and analytical commentary Monetary Conditions and Monetary Policy Transmission Mechanism.
