There will be no rapid reduction in loan costs in the Nizhny Novgorod Region.

      October 8, 2025 18:07 Economy

      Enterprises in the Nizhny Novgorod region should not expect a rapid cut in the key rate and cheaper loans. This was stated by Alexey Gorbunov, deputy head of the economic department of the Volga‑Vyatka Main Directorate of the Bank of Russia.

      According to him, despite the fact that the Central Bank has already cut the key rate three times since June — from 21% to 17% per annum — further reductions will take place gradually and with great caution.

      The expert noted that companies with loans at a floating rate should already have felt some relief: a cut in the key rate automatically reduces their interest expenses. However, during the period of high rates the debt burden on businesses has risen noticeably, especially for those that actively use borrowed funds.

      Nevertheless, according to Gorbunov, interest payments are not the main factor driving cost increases. A far more significant problem remains inflation, which affects all areas — from the purchase of raw materials and equipment to logistics.

      He also emphasized that without combating inflation one cannot expect affordable loans, because banks take inflationary risks into account when setting rates. That is why the Central Bank is acting cautiously and is in no hurry to sharply lower the key rate, despite pressure from businesses.

      According to forecasts by the Volga‑Vyatka Main Directorate of the Bank of Russia, the key rate could fall to 12–13% by 2026, and to 7.5–8.5% in 2027.

      Earlier an economist explained to Nizhny Novgorod residents the impact of the key rate on the region's economy.

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