Monetary conditions predominantly tighten in October
Nominal interest rates rose significantly in most segments of the financial market following the increase in the key rate and in anticipation of a further tightening of monetary policy in the medium term. Yet, in real terms, monetary conditions tightened to a lesser extent thanks to higher inflation expectations of households and businesses.
Corporate lending continued to expand fast. In the retail segment, lending activity was constrained by both high interest rates and the effects of macroprudential measures taken earlier. Attractive deposit rates supported the inflow of household funds into banks.
More details are available in the new issue of the Bank of Russia’s information and analytical commentary Monetary Conditions and Monetary Policy Transmission Mechanism.