Medvedev said about the need to reduce mortgage rates


RIA Novosti

The Russian economy is ripe for reduce mortgage rates to 6-7 percent per annum, said the Prime Minister of Russia Dmitry Medvedev at a meeting with Samara region Governor Nikolai Merkushin. Transcript of the meeting published on Tuesday, may 23, on the government website.

Medvedev noted that the decline in mortgage rates is “question Bank”, and the government expects that the rate will be reduced proportionate to the reduction in key rates by the Central Bank.

“We have to go (a task we have set for ourselves) on loan rate of 6-7 percent across the country. Macroeconomic conditions in General have matured,” — said Medvedev.

The Governor, in turn, informed the Prime Minister that in the Samara region, 70 percent of the acquired property is bought in the mortgage. The level of interest rates, according to Merkushkin, is still around 11 percent per annum.

As noted by RIA Novosti, according to the Central Bank, mortgage rates in Russia in the first quarter of 2017 averaged 11.8 percent, a decrease of 0.67 percentage points lower than in the same period of 2016.

April 28, the Bank of Russia took a decision to reduce the key rate to 9.25 percent. The key rate is the main monetary policy tool of the Central Bank. Under her control Bank loans. The indicator is affected, among other things, the formation of interest rates on loans to credit institutions.