National Bank pushes for lower interests on corporate loans

As of September 28^th, the National Bank introduced a new upper margin for rouble loans interest rates – not higher than the average rate in the previous month, minus 1%. As a result, loans’ interest rates will be reducing by at least 1% every month and by January 1^st, 2015 will fall below 30% per annum. Interest rates on deposits for individuals will be lowered too, as well as corporate expenses on servicing loans. Demand for corporate rouble loans will heat up, reducing the demand for currency loans. The main risk is that the banking system might lose some liquidity and be unable to meet the hgher demand for rouble loans.