CB told about the risks of a sharp growth in unsecured consumer credits

The Bank of Russia believes that the sharp rise in unsecured consumer credits can slow down the process of reducing inflation. This was stated at the forum “Banks of Russia — XXI century” head of the Central Bank Elvira Nabiullina, reports TASS.

“We are concerned about the risk of possible rapid growth in unsecured lending, which could slow down the process of reducing inflation,” he said. According to the head of the Central Bank, in August, loans to the public excluding foreign exchange revaluation increased by 0.8%, while loans to enterprises — 0.2%.

This means, convinced Elvira that such a growth structure of loans has “proinflationary more character than if the loans to companies to support new production grew faster than loans to support consumer demand.”

As he wrote RBC, the reduction of loan rates and stabilization of the Russian currency led to a revival in the market of consumer crediting. In July the volume of Bank-issued loans to individuals showed the highest rate since the beginning of the year.

As previously reported, annual inflation in June was 7.5 percent in July and 7.2%. As noted in the MAYOR, the reason for this were the strengthening of the ruble and low consumer demand.