The key rate increase by Central Bank will lead to higher production costs – Rusmolco
‘We have been developing quite successful cooperation with banks for many years. These banks provide huge support in the implementation of the most ambitious projects. One of our key and long-term partners is Rosselkhozbank. We value our partnership relations with all the banks we cooperate with. We hope that they also value us as a reliable customer,’ said Sharat Chandrasekhar.
He said that the company Rusmolco pays loans back without delay. However, the unstable business situation, according to the expert, for various reasons, can make this process quite difficult in various business sectors.
Sharat Chandrasekhar believes that the key rate increase by Central Bank will have a direct impact not only on Rusmolco, but also on the entire market. According to the expert, the cost of production will increase.
‘In the last 6 months, we have already seen a significant increase in prices for all categories of goods. Most likely, this trend will continue in the next 12-18 months due to the general global food price inflation, which affected almost all countries of the world, the expert said.
He added that most of the working capital for doing business, acquiring resources and other things is financed by bank loans. Consequently, with the increase in the key interest rate, the cost of financing will increase in the near future, and the total cost of production will increase even more. According to the expert, this will be an additional burden for both the manufacturer and the consumer.
Some industry participants also note that the key rate increase by Central Bank will have a negative impact on the market.
We remind that at the end of last week, the Bank of Russia raised the key rate to 4.5%.