VTB Bemoaning Russian Bank Funding Squeeze Gets Some Rate Relief

Russia’s central bank risks easing its tight-money policy too slowly to help lenders struggling with high funding costs and weakening demand for credit.

Central bank Governor Elvira Nabiullina cut the benchmark 1 percentage point on Friday to 14 percent, in line with market estimates, partly unwinding an emergency increase in December that boosted interbank rates as high as 29.93 percent. While VTB Group, the nation’s second-biggest bank, welcomed the decision, Deputy Chief Executive Officer Herbert Moos said the reduction wasn’t sufficient to revive lending.