An economist explained what Nizhny Novgorod residents can expect after the cut in the key rate.

      12 September 2025 19:20

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      Economy: The Central Bank of Russia has lowered the key rate to 17%. What this means for residents of Nizhny Novgorod was explained by the head of the Department of Economic Theory and Methodology at NNSU, Alexander Zolotov, in a conversation with NewsNN.

      This is the second consecutive cut. At the end of July the rate was reduced by two points at once — from 20% to 18% — and since the beginning of 2025 the reduction has already amounted to four points. The trend toward a sustained decline is evident.

      According to Alexander Zolotov, a one-point cut on its own will not have a noticeable impact on the region’s economy or the lives of its residents: it’s too small a step, and loans will remain expensive for both households and businesses. At the same time he emphasized that a clear downward course is visible, which means positive expectations will grow and it will be easier for entrepreneurs to make new plans.

      The expert warned of the risks of foreign currency becoming more expensive and of a possible outflow of funds from banks. In his assessment, consumer and mortgage loans will not become more accessible for now.

      Zolotov added that many expect a further cut in October, but with a double-digit rate it is too early to talk about comfort for borrowers. For lending to truly pick up, in his view, a return to the 7–7.5% level is needed — “that’s when everything will start moving again.”

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