The spring to return the key rate to the neutral range.
— What will happen to loans and rates on them? Housing list to data is being actively built in the region, so mortgages are of primary interest.
We are often told: if you raise the key
rate, the mortgage will be more expensive. This is not a fact. The fact is that the cost of money depends on the terms of the loan. We regulate the cost of “short money” with the key rate. We raise the rate — quite quickly and practically in parallel with the key rate. The rates on loans and deposits for up to a year change. Rates for up to three years change to a lesser extent. Rates for 10-30 years are long-term rates, and they mainly depend on the market’s trust in our policy, on the confidence of the population, businesses, banks, and investors that we can keep inflation close to 4%. After all, if we cope with this the main activities within the framework task, then on average our rate will be close to the neutral level, which we estimate at 5-6%.
I think that in such a situation
if we had not react, long-term rates would have gone up very significantly, because the market would have start to doubt that we could contain inflation. That is, some ao lists suspicions could have arisen, this would have shaken confidence and caus rates to rise, and in this case, mortgages would have react.