Russia’s VTB Bank sees room to reduce to 7% to stimulate lending

© Reuters An attendee wearing a protective face mask stands at VTB Bank during the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg, Russia, June 15, 2022.

VLADIVOSTOK, Russia (Reuters) – Russia’s VTB Bank CEO Andrey Kostin said on Wednesday that the central bank has room to cut its key rate to 7.5% from 7% now, in a move to stimulate lending in Russia’s banking sector.

The Bank of Russia will next meet on rates on September 16.

After experiencing heavy losses in the first half of this year, Costin expects the banking sector to make a loss in 2022, but should return to profit in 2023, although not at the level of profits recorded in 2021.

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