September sees no significant changes in monetary conditions
Monetary conditions (MC) depended on the diverse impact of financial and credit and deposit market indicators. Increased volatility in the foreign exchange market and the growth in short-term money market rates at the end of September were the drivers for MC tightening. According to the information and analytical commentary Monetary Conditions and Monetary Policy Transmission Mechanism, a decline in credit and deposit rates amid monetary policy easing had an opposite effect.
Money and debt market rates rose in September. The changes in short-term (one-week and longer) rates reflected market participants' fears of a possible acceleration in inflation in the medium term.
The inflow of household funds into the banking sector slowed down in August amid lower rates on ruble deposits and less attractive foreign currency savings with banks. As economic activity revived and companies adjusted to the changing environment, the increase in corporate lending and the recovery of mortgage market activity continued at a faster pace.