The Bank of Russia has announced an increase in the key interest rate to 21% per annum, as revealed by Governor Elvira Nabiullina following a Board of Directors meeting on October 25, 2024.
The Bank of Russia has announced a press conference scheduled for October 25 at 15:00, following the Board of Directors' monetary policy meeting. The event will feature Bank of Russia Governor Elvira Nabiullina and Deputy Governor Alexey Zabotkin.
The Bank of Russia has put forward a proposal to the Russian Ministry of Finance to amend legislation concerning the use of QR codes in payments for goods and services. The central aspect of this proposal is that banks will be required to adopt a universal QR code, developed by the National Payment Card System (NPCS).
Banks and car dealers are reportedly engaging in practices that may infringe on consumer rights, according to a recent review. Customers are often encouraged to purchase additional services at inflated prices. Contracts are structured in such a way that rejecting these services or obtaining refunds becomes difficult, raising concerns about consumer protection.
The corporate lending sector saw continued growth in September, with the rate increasing to 2.0% from 1.9% in August. Companies across various sectors sought both working capital loans and funding for investment projects.
Annual price growth has slowed in 76 Russian regions over September, with the most significant decreases observed in the Sakhalin Region and the Chechen Republic.
On October 18, 2024, the Bank of Russia released two silver commemorative coins in celebration of the 300th anniversary of the Saint Petersburg Mint. These coins are part of the Historical Events series and come in denominations of 3 rubles and 200 rubles.
The value of imports for goods and services saw an increase in the third quarter of 2024. This rise is attributed mainly to heightened domestic demand and a stronger ruble throughout the quarter.
On October 14, 2024, the Bank of Russia's Board of Directors decided to extend conditions for risk-oriented incentive-based regulation. This extension applies to projects focused on technological sovereignty and structural economic adaptation (TS and SAE).
The Bank of Russia has put forward a proposal to introduce a mandatory cooling-off period for consumer loans and microloans, aimed at countering loan fraud. The duration of this period will vary based on the loan amount. Loans up to ₽50,000 will not have a cooling-off period, while those between ₽50,000 and ₽200,000 will have a four-hour delay. For loans exceeding ₽200,000, the waiting time will be 48 hours. Mortgage and car loans (when funds are directly credited to car dealer accounts), as well as government-backed educational loans, are exempt from this requirement.
The Bank of Russia has released the results of its October 2024 monitoring of maximum interest rates on deposits in Russian rubles. The findings focus on the top ten credit institutions that attract the largest amount of household deposits. For the first ten days of October, the maximum interest rate recorded was 19.78%.
In the months of August and September, consumer activity remained high across various regions, as reported by the Bank of Russia. Tourist traffic saw an increase, along with a rise in car demand. However, there was a noted decrease in household demand for loans.
In October, economic activity experienced renewed growth following a period of slowdown over the previous four months. The Bank of Russia's Business Climate Index increased to 5.5 points from 4.6 points in September. Current output and demand estimates surpassed those of September. Companies maintained positive short-term expectations at levels consistent with the past two months.
In September, consumer prices saw an increase compared to August, after seasonal adjustments. The rise was particularly noticeable in outbound tourism and transportation services. Additionally, the indexation of prices for educational services exceeded typical levels. Various measures of underlying inflation also showed month-on-month growth.
Most statistical data and surveys indicate a slowdown in economic growth, influenced by both demand and supply factors. A gradual decline is observed in lending; employers' demand for new jobs is decreasing, and households are showing an increased tendency to save.