The reduction of the refinancing rate up to 12.5% per annum will contribute to the gradual reduction of deposit and loan rates, according to the bankers, Finance.UA reports.

“The stable UAH rate and the country’s financial support by international financial organizations creates the favorable market conditions for the reduction of deposit and credit rates subsequent to reduction of the refinancing rate. Within the near months, the rates will be able to lower by 1-1.5 p.p. and make up 11-12% per annum in terms of deposits, 15-18% per annum in terms of loans to legal entities. The interest rate policy will become the main driver of reduction of rates”, Chairman of the Management Board of RwS Bank Vladislav Kravetz.

Head of Treasury of Credit Dnepr Bank Oleg Kurinnoy supposes that due to reduction of the refinancing rate by 0.5%, there won’t happen any significant changes on the deposit market.

“The dynamics of the base rate has only the average value for the credit policy of banks, while it directly impacts the bank deposit revenues. That is why the half-percent reduction can proportionately affect the deposit policy of Ukrainian financial institutions. However, taking into account that the retail deposit rates are already decreasing on average by 0.5% each month, we are not expecting for any cardinal changes on the deposit market. The liquidity rate, which the banks already saved, allows evading the expensive attraction of the resource. And it impacts the reduction of credit rates, which undoubtedly impacts positively the Ukraine’s economy”, he expert said.

Chairman of the Management Board of Idea Bank Mikhail Vlasenko noted that the reduction of deposit rates will indirectly contribute to the revival of lending.

“The reduction of NBU’s refinancing rate stimulates banks to lower interest rates of attraction of deposits from the market. Amid the overliquidity conditions, the commercial banks place the surplus UAH liquidity in NBU’s deposit certificate. Thus, not having other placement tools, except for the lending, the banks will have to lower deposit interest rates. Regarding the lending, by forming the cheaper resource, under the influence of reduction of the refinancing rate, the banks will primarily disburse loans at more reasonable price. And the second thing – the banks will have to activate lending as the main income source”, the banker said.

Chairman of the Management Board of Ukrsotsbank Tamara Savoshchenko considers that there will not be a fast reduction of deposit rates.

“The reduction of the bank rate will undoubtedly result in the reduction of deposit rates; however, it will not happen fast, and the reduction will be insignificant. Firstly, because the reduction of the refinancing rate itself was insignificant; secondly, virtually all the banks, including state banks, lowered their deposit rates recently, and now, the banks’ efforts are aimed at the stabilization of deposit portfolios, because the first quarter demonstrated the outflows of deposits from many market players”, she said.

Meanwhile, the bankers forecast the reduction of the refinancing rate to 9-11% by late 2017.