Russian CEO blames interest rate volatility on Central Bank governor being a woman

The CEO of Russia’s VTB bank has linked the volatility of the country’s Central Bank key interest rate to the fact that its governor is a woman, Russian state-run news agency RIA Novosti reported on Wednesday.

Andrey Kostin was asked in an interview with state-owned TV channel Rossiya 24 whether the Russian Central Bank’s key interest rate could reach 25% next year and responded that it was difficult to predict because the process was “led by women”.

“Yes, when women lead the process, almost anything is possible,” he said.

Elvira Nabiullina has been at the helm of Russia’s Central Bank since 2013, before which she served as minister of trade and economic development, and as an aide to the president for economic affairs.

Kostin also suggested that the Central Bank’s key interest rate, the rate at which a central bank lends money to other banks, would likely be raised this year, possibly reaching 21%.

Kostin, who has been under international sanctions since 2018, was charged in the US earlier this year with involvement in a scheme to evade sanctions and launder funds to maintain his two superyachts collectively worth over $135 million (€123 million), along with a home in Aspen, Colorado.