The Ministry of Economic Development pointed to the difficult balance in the Russian economy

The Central Bank's decision to keep the key rate at 14% reflects the continuing difficult balance between inflationary risks and economic growth. About this on September 11th the press service of the Ministry of Economic Development reported.

"The Bank of Russia's decision reflects the continuing difficult balance between inflationary risks and the economy's need for growth incentives," RIA Novosti quoted the agency as saying.

The ministry added that the current monetary conditions in the country are still tough. According to representatives of the Ministry of Economic Development, timely easing of the monetary policy of the regulator in the future should be an important factor for the successful restart of the investment cycle in the Russian economy.

"Today, the Bank of Russia has kept the key rate at 14%. We expected consistent rate cuts throughout the year, but the pace has slowed in recent meetings. This is especially sensitive for the real estate market, since the availability of mortgages and purchasing power directly depend on monetary policy," Andrey Fatnev, commercial director of the Brusnika development company in Moscow and the Moscow Region, told Izvestia.

According to him, for about eight months now, low sales rates have been recorded in the market as a whole. For a noticeable recovery in demand, a more affordable market mortgage is needed, said an industry representative.

"We expect that by the end of the year, the reduction in the key rate will resume and be more noticeable. If this does not happen, we will not see a significant recovery in demand until the end of the year," believes Andrey Fatnev. This opinion is shared by the director of the residential real estate Sales unit of A101 Group of CompaniesVladimir Kolesnikov.

"For the primary market, maintaining the rate means that the current demand model has not changed significantly yet. Market mortgages remain expensive, so preferential programs, primarily family mortgages, continue to be the main driver of mortgage demand for new buildings, while installments and special banking programs retain their role," the business representative believes.



Price with a question: inflation in Russia has acquired the effect of a "Chinese box"

What will become more expensive in the fall and what decision will the Central Bank make?

On the same day, the Central Bank of Russia announced that the country's key interest rate would remain at 14%. The document drawn up following the meeting of the Board of Directors clarified that annual inflation, as of September 7, was 6.3%. According to experts' expectations, this percentage will return to four in the coming year.