Sberbank to raise mortgage rates in Russia

Russia's largest lender Sberbank opens new tab will raise its market mortgage rates to a minimum of 20% from August 6, according to Sberbank's press release.

The move follows the Russian central bank decision last month to raise its key rate by 200 basis points to 18%.

"On the primary market, the minimum interest rate will be 20.3% when using life insurance, the Mortgage Plus promotion, and a down payment of 20% or more," the press service added.

The central bank's sharp rise of its key rate in July came with warnings that policy tightening will continue and the bank's head warned later that the country's economy has entered "very stormy uncharted waters," RIA Novosti reported.