05 June 2009, Friday, 11:13

The Bank of Russia lowers refinancing rate

author: Ravil Ramazanov

PR-department of the Central Bank of Russia reports the refinancing rate is lowered from 12 to 11,5% since June 5. This decision is reached by the Central Bank of Russia within the frames of the measures, aimed at containment of inflation tendencies. This is already the third lowering of the refinancing rate since the end of April 2009. The board of directors of the Central Bank of Russia also reached the decision concerning lowering of the interest rates on separate operations, held by the Central Bank of Russia.

This decision of the main bank of the country means that commercial banks will pay for obtained credit resources less and, correspondingly, the cost of credits will go down too both for legal and natural persons. In the upshot it leads to reduction of inflation in the country but at the same time the profitability of deposits, which reaches 17-18% of interest per annum, expected to become lower too.