The central bank explained the reasons for the slowdown in demand in the economy.

      28 November 2025 16:07 Economy

      The Bank of Russia is deliberately curbing consumer demand to give businesses the opportunity to independently expand production capacity. This was reported by the Vremya N news agency, citing Deputy Head of the Volga-Vyatka Main Department of the Bank of Russia, Ekaterina Bogopolskaya.

      The topic came up during a meeting with entrepreneurs at the Chamber of Commerce and Industry of the Nizhny Novgorod Region.

      It emerged that the high key rate and its impact on business development worry participants of the meeting. Nizhny Novgorod entrepreneurs expressed concern that they had previously taken out loans amid strong demand but are now facing its slowdown.

      Answering questions, Ekaterina Bogopolskaya stressed that persistently high demand cannot be guaranteed, and that companies should take possible fluctuations into account when planning development. She advised entrepreneurs to use more conservative scenarios and to consider alternative sources of financing, including the stock market.

      According to the central bank representative, a premature cut in the key rate could lead to a sharp rise in prices.

      "If we cut the rate now, prices will rise many times over. If the key rate is inadequate to the pace of price growth, banks still will not give you cheap loans," Ekaterina Bogopolskaya said.

      Earlier it was reported that the debt of Nizhny Novgorod businesses to banks had reached 929 billion rubles.

      NIA "Nizhny Novgorod" has a Telegram channel. Subscribe to stay informed about major events, exclusive materials and breaking news. Copyright © 1999—2025 NIA "Nizhny Novgorod". When republishing, a hyperlink to NIA "Nizhny Novgorod" is required. This resource may contain 18+ material.