An increase in the yield of OFZs over longer terms did not significantly affect domestic monetary conditions

An increase in the yield of OFZs over longer terms did not significantly affect domestic monetary conditions

An increase in the yield of OFZs over longer terms did not significantly affect domestic monetary conditions

An increase in the yield of OFZs over longer periods, associated with increased volatility in the financial and commodity markets and an increase in borrowing, did not significantly affect domestic monetary conditions, the Bank of Russia said following a meeting of the Board of Directors.

As the CBR notes, monetary conditions have generally eased since the previous board meeting in July. Lending and deposit rates mostly declined, and lending continued to expand.

An increase in the yield of OFZs over longer periods, associated with increased volatility in the financial and commodity markets and an increase in borrowing, did not significantly affect domestic monetary conditions. Along with the reduction in the key rate, preferential programs of the government and the Bank of Russia, as well as regulatory relaxation, have a significant impact on interest rates and lending dynamics.

“When making decisions on the key rate, the Bank of Russia will assess to what extent the termination of the said anti-crisis measures will affect monetary conditions,” the regulator notes.

“In view of the significant decrease in interest rates, financial institutions, enterprises and citizens are adapting to changing conditions in the financial market. It is necessary to give time to adjust savings models, including the possible redistribution of funds between various financial market instruments, without creating risks for citizens, enterprises and financial organizations “, – explains the Central Bank of the Russian Federation.

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