The Central Bank of Russia’s decision to lower the key rate to 18% is expected to bring significant changes to the Russian economy, impacting loan prices, deposit interest rates, and overall market sentiment. Professor Igor Belskikh suggests that the era of high deposit yields is over, and the market will be searching for alternatives. He advises against excessive currency purchases, favoring ruble assets, and short-term deposits.

With the key rate reduction, loan prices from banks are expected to decrease. This shift signals a move towards cheaper capital in Russia, with the Central Bank aiming to stimulate economic growth. Organizations and individuals are likely to initiate projects, finance transactions, and update their resources, fostering economic activity.

Interest rates on deposits are already declining, with the best rates for short-term deposits around 16.6%. The market is unlikely to see deposit yields as high as 19-22% again. This drop in deposit yields is driving interest in high-yield government and corporate bonds.

As money becomes cheaper, interest in foreign exchange transactions is rising, but Belskikh advises caution. He notes the limited availability of smaller euro denominations and warns against old-style dollars. While some price increases may occur for those buying currency for specific needs, he doesn’t anticipate drastic changes. Belskikh believes short-term ruble deposits remain a more profitable strategy, even with the key rate reduction.