Rus­sian banks may raise in­ter­est rates

The Pak Banker - - Company & Boss News -

MOSCOW: Rus­sian banks, which con­sid­er­ably cut their de­posit and credit in­ter­est rates in 2010, may start rais­ing them in the first quar­ter of 2011 amid higher in­fla­tion and a pos­si­ble tight­en­ing of mon­e­tary pol­icy by the cen­tral bank, Her­man Gref, head of Rus­sia's top lender Sber­bank, said on Wed­nes­day.

"I be­lieve that ev­ery­body will have to raise rates. Ev­ery­thing will de­pend on the in­fla­tion trend. I think this trend is pos­si­ble by the end of the first quar­ter - in­fla­tion will go up, cen­tral bank rates will rise, so credit and de­posit rates will also in­crease," Gref said.

Gref also said that he did not ex­pect the cen­tral bank to raise in­ter­est rates be­fore the end of the year. "We do not have such ex­pec­ta­tions. I be­lieve it is too early to do so now, how­ever, it will be nec­es­sary to think about it in the first quar­ter," Gref added. -PB News

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