VTB interested in further decrease in the rate of the Central Bank

© RIA Novosti / Alexei Filippoupolitis in photobacteria stand Vneshtorgbank (VTB). Archive photoVTB interested in further decrease in the rate of the Central Bank© RIA Novosti / Alexei Filippoupolitis the image Bank

The head of VTB Andrey Kostin interested in further rate reduction by the Bank of Russia.

«As a banker, still interested in further rate reduction», — he told in interview to TV channel «Russia 24».

The Bank of Russia first in this year meeting of the Board of Directors on monetary policy on 9 February it cut the key rate by 0.25 percentage points to 7.5%.

«Rate reduction (CB — ed) positive for the economy because it facilitates access to a particular resource, reduces the cost to the company, more investment will increase and income… it’s all like a chain. For banks there is another side, because at this level will definitely decrease the margin of the Bank, because at a low rate of lending to very large it can not be, and the banks know it. But the compensation will be. First-the growth of lending volumes, and secondly- more reliability of our borrowers,» — said Kostin.

«There is the correct view that it (the rate — ed.) should depend on inflation… I think the rate of 5% would be quite real,» he said.

Last year, the Central Bank lowered the rate six times, for a total of 2.25 percentage points. And December to reduce immediately by 50 basis points was a bit of a surprise for analysts and market participants. The head of the Central Bank Elvira Nabiullina, then explained the decision by saying that the regulator positively changed perspective on the situation in the economy in 2018. The Bank of Russia has signaled that in 2018 it could take a few pauses in the reduction of the key rate.

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