Nominal interest rates have risen significantly across most financial market segments following an increase in the key rate. This rise is also fueled by anticipation of further monetary policy tightening in the medium term. However, real monetary conditions have tightened to a lesser extent due to higher inflation expectations among households and businesses.
Corporate lending has continued to expand rapidly. In contrast, retail lending activity has been constrained by high interest rates and the effects of macroprudential measures implemented earlier. Meanwhile, attractive deposit rates have supported the inflow of household funds into banks.
For more detailed information, refer to the new issue of the Bank of Russia’s information and analytical commentary titled "Monetary Conditions and Monetary Policy Transmission Mechanism."