Russian financial market moderately positive in September

The Russian financial market was positive in September. Most segments of the Russian market saw a rise in quotes amid the easing of monetary policies in Russia and in a number of foreign states. These are the findings given in the new issue of the Banking Sector Liquidity and Financial Markets commentary.

The structural liquidity surplus reduced in September, which was caused by a temporary increase in banks’ balances in correspondent accounts with the Bank of Russia as compared to the beginning of the previous month.

The spread between interbank rates and the key rate remained negative. Expectations for the key rate cut continued to impact money market rates in September. The interest rate spread in the FX swap and interbank lending segments slightly expanded owing to a risen demand among non-residents for foreign currency in the FX swap segment.

Interest rates continued to decline at the beginning of 2019 Q3 across all main segments of the credit and deposit market. Growth of the corporate loan portfolio slowed down in August against the backdrop of an increase in loan maturities. Activity in the retail segment of the credit market preserved a downward trend.