The financier explained how the new key interest rate will affect mortgages and loans.

      July 25, 2025, 18:10

      [127]

      Economy

      The Bank of Russia has lowered the key interest rate by 2 percentage points. This was announced following the Board of Directors meeting. Central Bank Governor Elvira Nabiullina stated that the rate reduction should be cautious, as inflation has not yet reached the target. She also noted that the decline in inflation might be temporary.

      Financial market expert Andrey Barkota told the "360" channel that a 2 percentage point cut in the key rate will not make mortgages more affordable. In his opinion, the rate needs to be below 14% for that.

      He also mentioned that a sufficient level of mortgage rates begins below 14%.

      "When our mortgage rates fall below 14% — that means the key rate should be closer to 5%, and that will probably be at the end of 2026 or the beginning of 2027 — only then can we talk about mortgage affordability," the expert concluded.

      Barkota also noted that loans will not become more accessible. According to business, affordable loans should be offered at 14% per annum or lower. He said the 2% rate reduction will only slightly decrease payments — by 3 to 10%. This is because businesses receive loans at a floating rate that depends on the key rate.

      The expert also emphasized that the demand for loans remains low due to difficulties in meeting existing obligations. For those still wanting to take out a loan, Barkota advised approaching banks where the salary is deposited. Such banks have more information about the client's financial situation and can offer more favorable conditions.

      The next Board of Directors meeting to set the key rate is scheduled for September 12. Analysts will monitor this event to assess the Central Bank’s next steps and their impact on the economy.

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