Reshetnikov warned about the negative consequences of high Central Bank rates

The head of the Ministry of Economy, Maxim Reshetnikov, said that raising the key rate could reduce the possibilities of investment lending. In addition, according to him, this is fraught with problems with financing serious investment projects.

“But we are concerned about the long-term consequences, primarily the reduction in investment lending opportunities. And of course, at the current rates, serious investment projects cannot be financed,” the minister said. At the same time, according to him, the logic of increasing the key rate for short-term purposes is clear.

Maxim Reshetnikov also noted that the Ministry of Economy and the Ministry of Finance have different views on the development and expansion of preferential investment programs, but emphasized that the ministries are trying to find a compromise.

On September 15, the Central Bank raised the key rate from 12% to 13%. The regulator explained this decision by pro-inflationary risks. The inflation forecast was also raised to 6–7% by the end of 2023. In addition, the leadership of the Central Bank has repeatedly warned that the country will need a long period of tight monetary policy. In particular, about this spoke head of the regulator Elvira Nabiullina.

The next Bank of Russia meeting on the rate will be held on October 27.

How unsecured consumer loans are hampered by rates and limits – in the material “Mortgage pulls out lending”.

Anastasia Larina