Page 19 - RusRPTDec20

2.11 ​ ​Russian retail investors piling into the stock market for the first time, but CBR worried about rising risks
Russian retail investors are finally investing in stocks as they look for better returns following the steady fall of interest rates at banks in recent years.
With inflation in double digits for much of the time following the collapse of the Soviet Union in 1991 Russians have always been on the hunt for ways to protect the value of their savings. The default option has been to keep their savings in bank deposits that pay high interest rates.
However, following a long run of sustained interest rate cuts by the Central Bank of Russia (CBR) to the point where the overnight prime rate is now almost “normal” – the CBR cut rates to 4.25% at its last meeting in October – bank deposits no long pay an attractive return for most Russians who have begun to cast about for other investments.
Retail investments into stocks has been accelerating every month this year, reports the CBR, as cited by The Bell. The third quarter of this year set a new record new number of brokerage companies’ clients up by more than a quarter, or 1.6mn new clients to a total of 7.6mn compared the quarter before. Over the year the number of new clients with brokerage firms has already more than doubled.
19 ​RUSSIA Country Report​ December 2020 www.intellinews.com