Nominal interest rates in the money and bond markets in Russia saw a notable increase by the end of September, reversing the downward trend observed in previous months. At the same time, inflation expectations among both businesses and households decreased. This combination led to tighter monetary conditions compared to August.
During August, loan and deposit rates were falling as the effects of earlier monetary policy easing continued to work through the system. There was also a modest increase in corporate and retail lending during that month. However, by the end of September, credit growth to the economy slowed again, and the expansion of monetary aggregates decelerated.
Further information can be found in the analytical commentary “Monetary Conditions and Monetary Policy Transmission” provided by the Bank of Russia.
