Executive Director of the Avststat analytical agency Sergey Udalov commented on the decision of the Bank of Russia to raise the key rate from February 28, 2022 from 9.5 to 20% per annum.
The Bank of Russia will make further decisions on the key rate based on an assessment of risks from external and internal conditions and the reaction of financial markets to them, and taking into account the actual and expected inflation dynamics relative to the target, economic development over the forecast horizon.
According to Sergei Udalov, such an increase in the key rate will lead to an even higher growth in car loan rates.
It can be assumed that the number of customers for buying a car on credit will therefore decrease. However, realizing that the supply of new cars can be stopped for an unpredictable period, and their prices can rise even more significantly than interest on loans, buyers will take out loans at higher rates. At the same time, it is highly likely that some of the banks will either stop issuing loans, or will revise rates very quickly in accordance with the rapidly changing situation.