Kostin: lower interest rates 'definite trend' in Russia
VTB chairman Andrey Kostin said at the Eastern Economic Forum in Vladivostok that his bank has learned to raise capital domestically which has helped in times of crises.
"There’s quite wide expectations that rate might be cut again by a quarter of a percent on Friday. We shall see, but definite trend is to lower key rate in Russia,” CNBC cited Kostin as saying.
Kostin said inflation in Russia is expected to be around 4%, but the key rate is currently 7.25% — much higher than that in major economies around the world. That means the central bank has room to ease monetary policy even more to support the economy, Kostin added.
The sanctions "substantially changed our funding policy," the VTB chairman said, explaining that his bank found it difficult to continue borrowing in U.S. dollar and euros in a big way.
"We learned how to collect money here in Russia and it helps in times of crises," he stressed.