Companies will have to raise prices against the background of an increase in the Bank of Russia’s key interest rate: expert

According to Khandoshko, a high rate implies an increase in loan interest rates; its growth is aimed at cooling the economy and reducing purchasing power;

“In such a situation, loans for small businesses are practically not available. It cannot be said that before the rate increase banks actively provided loans to small businesses, but now the situation has worsened even more. Before, companies could get small quantities, but now even this is not possible. Companies will have to create reserves and raise prices,” said the expert.

Khandoshko added that even for a subsidized company that receives benefits from the state, a high rate cannot be profitable.

In a context of high rates, the easiest thing is for companies that depend less on working capital and capital investments, the expert believes.

“For example, if it is a coffee consulting company, nothing changes globally for it. If the business is just a cafeteria, the situation is not desperate, but such a business requires constant investments. But if it is a coffee production business, then the problems are more serious: large investments in equipment and constant purchases are required,” said the expert.

The expert summarized that the more complex the business, the more difficult it will be in conditions of high rates.

Experts predicted an increase in the rate to 23% at the next meeting of the board of directors of the Central Bank. According to SberCIB estimates, the rate is expected to fall to 17% by the end of 2025. RB.RU found out how companies feel about rising borrowing costs.

fake images