Advice from Nabiullina: Invest Your Money in Banks
Moscow, March 17 – A possible increase by the Central Bank of the key rate at upcoming meetings may encourage new depositors to delay opening an account, but it’s still not worth keeping money at home: it’s better to take the money to the bank and not miss the chance. Benefits, says Elvira Nabiullina, President of the Bank of Russia.
Responding to a question during a press conference, she noted sarcastically: “Someone is waiting in the hope that we will raise the key interest rate.”
“We have already given an indication that we can raise the rate if the risks of inflation increase… There is a possibility of a rate hike, but it is not predetermined. Therefore, if we talk about people who decide to deposit money or not, of course we should think first and foremost about their financial goals.
“You can wait for the rate to increase, which may not happen. But during this time, if you keep the money at home, you will lose the interest income that you could have if you deposited the money now. This, of course, must be taken into account and measured,” he added. Nabiullina.
On Friday, the Bank of Russia, as expected, kept its key interest rate unchanged, leaving it at 7.5% per annum for the fourth time in a row. The central bank suspended its main rate-cutting cycle in October, leaving it at 7.5% annually. Nor did the regulator change it in December and February.
At the same time, in its release on the key rate, the Bank of Russia kept the signal for further action: if pro-inflationary risks increase, it will assess the advisability of raising it at future meetings.
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