Report: Cbanker: Russian liquidity surplus can cause lending bubble

MOSCOW, Apr 18 (PRIME) -- Liquidity surplus in the Russian banking sector can cause bubbles in retail, corporate and mortgage lending, Deputy Central Bank Chairwoman Ksenia Yudayeva told Bloomberg in an interview published Monday.

Yudayeva said that the central bank should reduce the key rate very slowly to avoid overheating the economy in these circumstances.

She also said that the authority could theoretically restart foreign currency purchases on the market but the basic scenario of the central bank does not include this measure.

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