Contrary to expectations, the Russian mortgage market is growing despite high interest rates. Why do Russians continue to take out mortgages even in the face of inflation and the risk of ruble devaluation? In this article, we examine the key reasons — from the desire to protect savings to government support. Find out how high rates affect ...

... financial aspects we face: Loans and mortgages. When the key rate rises, banks raise rates on mortgages and consumer loans. This means that loans become more expensive, and vice versa, when the rate decreases, loans become cheaper. Deposits. When the key rate is high, banks offer more favorable terms on deposits to attract funds. This provides an opportunity to earn on deposits, since interest rates on them also increase. Prices for goods and services. An increase in the rate leads to a decrease in demand, which can stabilize or even reduce prices, especially for long-term consumer goods such as cars and real estate. Example: how the ...

... Bank oversight. Market Consolidation: It is likely that small and medium-sized banks will begin to liquidate their assets or merge with larger players. The decline in revenues may lead to the emergence of larger banking holdings capable of managing high interest rates and capital burdens. Decrease in Credit Activity: In a high-rate environment, banks will be unable to actively increase lending volumes, limiting their growth potential. Meanwhile, demand for loans, especially mortgages, will decline, which will ...

... borrowing costs began to slow down the economy: by mid-2025, GDP growth had significantly decelerated, and there were risks of a downturn in several sectors. The decision to ease policy coincided with the consensus forecast of analysts and business demands. High interest rates had raised concerns among entrepreneurs, as expensive loans stifled investment and consumer demand. The business community and even some government officials had previously publicly called for a more decisive rate reduction, fearing a recession....

Today in Russia, the problem of credit overheating is growing, especially against the backdrop of high interest rates and challenging economic conditions. What does this mean for businesses, and what risks may it lead to? In this article, we analyze what credit overheating is, why companies continue to take out loans despite high costs, and how this can impact ...