Russia to raise risk premiums on unsecured consumer loans from July

MOSCOW (Reuters) - Russia's central bank on Friday said it would raise risk premiums on unsecured consumer loans from July 1 in an effort to reduce citizens' debt burdens and increase stability in the banking sector should consumer loan losses increase.

"Unsecured consumer lending has sped up," the central bank said in a statement as it held interest rates at 16% on Friday, raising its inflation forecast for 2024 and acknowledging for the first time that it may struggle to reach its 4% target this year.

Consumer loan arrears are growing quickly, the bank said, with the increase in March at 1.8%, compared with a 0.9% increase in February and January.

The bank said it was also setting premiums on car loans.

(Reporting by Reuters; Writing by Alexander Marrow; Editing by Mark Trevelyan)