The Bank of Russia announced the reduction of savings from the population
The savings rate of the population, or the ratio of personal savings to income in August-September decreased to values significantly lower levels 2013-2014. People are actively financed the purchase through lending and spending savings. In the first half of 2018, the Russians directed on savings of 5.9% of their income, which is the minimum for the last 15 years.
Of course, to some extent, the behavior of Russians is a result of low interest rates on deposits. However, the main thing is the conscious choice to live here and now, not deferring consumption for later. Probably it is, in particular, a consequence of the policy of the weak ruble, which is held by the Russian monetary authorities. Confidence in the national currency has been undermined during the time of devaluation in 2014. And still not restored.
The Russian economy is the behavior of the Russians is profitable, it supports and so weak domestic demand. However, the Russians themselves often do not have savings and still get in the credits. To live on means not many people want. Hence personal tragedies. It’s difficult to understand how to engage in MFIs at 1% per day. We expect a rise in Bank of Russia key rate to 8%, which will make saving for the Russians a little more attractive, but fundamentally the situation will not change.
The Director of analytical Department,