Bankers and State Duma deputies recently asked the Central Bank of Russia to reduce its interest rates.
The Central Bank’s current interest rate stands at 17 percent, Oblastnaya Gazeta said on Monday.
The Central Bank is being asked to gradually reduce interest rates, beginning with a reduction to 15 percent this month.
The request is for interest rates to eventually decrease to 10.5 percent, President of the Association of Regional Banks of Russia and Deputy Chair of the Duma Committee of the Financial Market Anatoly Aksakov said.
The proposed request said that continuing high interest rates will only lead to bankruptcies throughout Russia’s businesses and creditors. Reducing the interest rate by just 2 percent could vastly improve the current crisis.
The foreign exchange market, estimated budget resources and expected tax flow foresee a more stable Russia in the future, but banks still face high interest rates. Bankers claim that increasing interest rates are harmful to the liquidity shortage.