News from April 2024

Central Bank releases international reserves template for March 2024

The Central Bank has released the International Reserves Template for March 2024. The report provides a detailed account of the reserves held by the country, reflecting changes and trends observed over the past month.

Census Bureau releases March 2024 advance economic indicators report

The U.S. Census Bureau has announced the release of its monthly report, "Monthly Advance Economic Indicators Report," for March 2024. This report is part of an ongoing effort to provide timely economic data.

Bank of Russia discusses new regulations for online financial services

It is considered reasonable to implement unified standards for communication with consumers and apply various forms of soft regulation, including the Bank of Russia’s methodological recommendations and information letters, in the area of online sales of financial services. This opinion was shared by a large number of participants during the discussion of the Bank of Russia’s consultation paper.

Inflation expectations fall slightly as consumer sentiment remains elevated

Households' inflation expectations for the coming year have decreased slightly, according to a recent survey by InFOM. The findings show that expected inflation has edged down from 11.5% in March 2024 to 11.0% in April. The decline was noted particularly among respondents without savings, while those with savings reported little change.

Bank of Russia begins publishing detailed data on individual housing mortgages

The Bank of Russia has initiated the publication of statistics on mortgage loans specifically for purchasing and constructing individual houses. This data will be available for all of Russia and broken down by region.

Pension funds in Russia exceed ₽7.5 trillion with positive returns

In 2023, the aggregate portfolio of pension funds in Russia experienced a growth of 7.2%, surpassing ₽7.5 trillion by the year's end. This increase was attributed to positive investment returns and a rise in funds entering the non-governmental pension system (NPS), including contributions from private clients.

New law allows fee-free money transfers up to ₽30 million monthly

According to a new law effective from May 1, 2024, individuals will be able to transfer up to ₽30 million per month between their own accounts across various banks without incurring fees. Transfers can be made using mobile applications, bank websites, or through the Faster Payments System (SBP) by phone number.

Bank of Russia simplifies process for banks to take foreign cash abroad

Since April 27, 2024, the procedure for credit institutions in Russia to obtain permits from the Bank of Russia for taking foreign cash abroad has been simplified. Banks are no longer required to submit both opinions on established criteria of damages and an application for taking out worn-out or damaged banknotes simultaneously.

Bank of Russia Payment System announces operational changes for April and May

On April 30 and May 10, 2024, the Bank of Russia Payment System will follow a specific operational schedule. The system's preliminary session will commence at midnight Moscow time and conclude at 1:00 AM. Following this, the regular session will run from 1:00 AM to 9:00 PM.

Microfinance organizations report significant growth in corporate lending for 2023

In 2023, microfinance organizations (MFOs) in Russia provided loans totaling ₽105.4 billion to small and medium-sized businesses, a significant increase from the ₽70.5 billion issued in 2022. Both government and commercial MFOs contributed nearly equally to this lending amount.

Banking complaint numbers fall as anti-hard sell laws take effect

The Bank of Russia reported a decrease in consumer complaints for the first quarter of 2024. The number of grievances submitted by financial consumers dropped by 13.6% compared to the beginning of 2023.

Bank of Russia terminates Association SRO ACCCs Vybor's status

On April 26, the Bank of Russia announced its decision to terminate the status of a self-regulatory organization in the financial market, specifically targeting the Association Self-regulatory Organisation of Agricultural Consumer Credit Cooperatives Vybor (Association SRO ACCCs Vybor).

Bank of Russia maintains key interest rate at 16% amid easing inflation pressures

The Bank of Russia has opted to maintain the key rate at 16.0% per annum, according to Governor Elvira Nabiullina. The decision follows a review of inflationary pressures, which have been easing gradually, though lending and consumer activities remain high. Despite some deceleration in inflation, "it is so far impossible to say that the slowdown of inflation has become steady," Nabiullina stated.

Bank of Russia issues commemorative coin for EAEU's 10th anniversary

On April 26, 2024, the Bank of Russia is set to release a new commemorative coin marking the 10th anniversary of the Eurasian Economic Union (EAEU). The coin, with a denomination of three rubles, is crafted from silver and weighs 31.1 grams with a fineness of 925/1,000. It measures 39.0 mm in diameter and features a round shape.

Bank of Russia reveals agenda for Financial Congress in St Petersburg

The Bank of Russia has announced the release of the program architecture for its upcoming Financial Congress. The details have been made available on the event's official website.

Share price and availability details discussed on April 26, 2024

The share price and availability details were discussed on April 26, 2024.

Bank of Russia maintains key rate at 16% amid persistent inflation concerns

On April 26, 2024, the Bank of Russia Board of Directors decided to maintain the key rate at 16.00% per annum. Although inflationary pressures are gradually easing, they remain high due to elevated domestic demand outpacing supply capabilities. This situation is expected to slow down the return of inflation to the target more than previously forecasted by the Bank in February.

Bank of Russia increases risk-weight add-ons for consumer and car loans

The Bank of Russia has announced an increase in risk-weight add-ons for unsecured consumer loans and introduced new requirements for car loans, effective from July 1, 2024. This move is intended to limit individual debt burdens, strengthen the macroprudential capital buffer, and improve banks' resilience against potential losses on consumer loans.

Labor market shifts pose potential challenges for inflation normalization

The recent evaluation of labor market dynamics in advanced economies (AEs) has highlighted several key issues that could affect the normalization of inflation. A noticeable shift in the Beveridge curve, which illustrates the relationship between job vacancies and unemployment, indicates changes in labor supply dynamics.

Geopolitical tensions increasingly impact global economy and policy

In recent years, geopolitical tensions have increasingly impacted the global economy and policy-making. This shift contrasts with the period following the 2008-09 Global Financial Crisis when investors prioritized economic performance over political dynamics. At that time, global policies were more aligned with economic conditions rather than political risks.