Russia's Mortgage Interest Rates Soar Amid Economic Stabilization Efforts

The Kremlin is closely observing the surge in mortgage interest rates, with Russia's central bank elevating the key rate to 21% to combat inflation. Sberbank, the largest lender, also increased mortgage rates by 3.5 percentage points. These measures are aimed at ensuring macroeconomic stability.

The Kremlin announced on Friday that it's keeping a watchful eye on rising mortgage interest rates, as Russia implements steps to maintain macroeconomic stability.

Last month, the Russian central bank hiked the key interest rate to 21%, marking the highest level in two decades. This drastic measure is intended to control inflation and address the population's growing inflationary expectations.

In response, Sberbank, Russia's largest lender, adjusted its mortgage rates, increasing them by 3.5 percentage points to a new range of 28.1-28.4% starting November 15.

(With inputs from agencies.)