Sberbank Hikes Mortgage Rates Amid Economic Turbulence

Sberbank, Russia's largest lender, will raise its market mortgage rates to a minimum of 20% from Tuesday. This move follows the Russian central bank's decision to increase its key rate to 18%. The economic environment remains volatile, significantly influenced by ongoing conflicts and policy tightening measures.

Sberbank, Russia's largest lender, will increase its market mortgage rates to a minimum of 20% from Tuesday, according to Russian agencies.

This decision follows the Russian central bank's recent move to raise its key rate by 200 basis points to 18%, as reported by the RIA state news agency citing Sberbank's press release. On the primary market, the minimum interest rate will be 20.3% when using life insurance, the Mortgage Plus promotion, and a down payment of 20% or more, the bank announced.

Sberbank's head, German Gref, recently warned of a significant slowdown in lending growth due to the challenging economic climate. Russia's economy, heavily impacted by its exclusion from major Western financial services amid the Ukraine conflict, remains pressured by ongoing policy tightening measures and geopolitical instability.

(With inputs from agencies.)