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Estimated possible reduction in interest rates on mortgages in Russia

Average mortgage rate in Russia may drop down to 6.2 percent by year-end, said RT investment strategist "BKS the Prime Minister" Alexander Bakhtin.

He commented on the reduction of the key rate by the Bank of Russia to a record low for the entire post-Soviet period level of 4.25 per cent.

"Reduction in the mortgage loan even at 1-1,5% per annum can significantly reduce the costs of families on repayment of the loan. The overall trend of lowering interest rates will increase the demand for new buildings and the secondary market," said Bakhtin.

Earlier, the head of the Central Bank Elvira Nabiullina said that the regulator does not exclude the possibility of further reduction of the key rate at the meeting in September. The decision will be based on the assessment of the economic situation, she said.