Sberbank First Deputy Chair: Key Rate Must Be at Least 10% to Match Real Rate

Alexander Vedyakhin, first deputy chairman of Sberbank, said the main problem for the Russian economy is the high real interest rate facing enterprises. To bring the real rate into balance, the key rate should be at least 10%.

With inflation at 4%, a real rate of 6% would allow businesses to operate normally, take loans, and grow, Vedyakhin explained. The comment comes amid ongoing debate about monetary policy tightening in Russia.