Structural liquidity surplus decreased in June

In June, the structural liquidity surplus reduced as placement of federal bonds continued, Sberbank paid out dividends to the Bank of Russia, and credit institutions repaid deposits of the Pension Fund of the Russian Federation. These are the findings provided in the latest issue of the Banking Sector Liquidity and Financial Markets commentary.

The spread of short-term interbank loan rates to the Bank of Russia key rate increased a little in June, while the spread of rates in the FX swap and interbank segments reduced due to a lower inflow to the current account of the balance of payments.

The decision made by the Bank of Russia Board of Directors on 14 June was in line with the market expectations. Moreover, many analysts noted an even softer signal.

The Russian financial market was positive in June. This was mostly due to the US Federal Reserve System’s meeting where it announced possible easing of monetary policy this year.

In May, interest rates in the deposit market continued to decline, and a number of other credit market segments observed signs of a downturn in interest rates. In the corporate segment of the credit market, companies continue to replace their foreign currency loans with ruble-denominated (mostly long-term) loans. In May, lending activity in the retail market slightly decreased.