The Bank of Russia will consider raising the key rate at a meeting on Friday, July 26.
Experts predict that the Central Bank may raise the rate from 0.5% to 2%, taking into account inflation data.
“The main problem is the growth of unsecured lending,” economist Yevgeny Nadorshin told Rossiyskaya Gazeta .
In his opinion, it will be enough for the Central Bank to increase the rate by 0.5%, but perhaps even more.
Nadorshin said that people continue to take out loans at high rates for everything from food to apartment renovations.
Experts believe that raising the rate to 18% will slow down lending and inflation, as the Central Bank plans.
Nadorshin explained that entire groups of the population and businesses are decisively taking out expensive loans and will not stop doing so when the rate increases.
