30 September 2009, Wednesday, 14:27

The Central Bank of Russia lowers refinancing rate

author: Olga Gorunova

On September 29 the board of directors of the Central Bank of Russia reached the decision to lower the refinancing rate by 0,5% to 10% of interest per annum from today, the PR department of the Central Bank of Russia reports. The news-service of the National Bank RB explains that the abovementioned decision was made on the base of the analysis in money and credit sphere and was caused by the necessity to stimulate economic activity in the country additionally.

For two decades of September 2009 the consumer prices in Russia remained at the same level and that corresponded to the accumulated from the beginning of this year inflation at the rate of 8,1% (the index of the same period of time in 2008 is 10,2%). From the beginning of the year inflation went on coming down: on September 11 its level made up 11% (11,6% in August). Since the factors, connected with the restrictions on the internal demand and the ruble money supply, go on positively influencing upon the dynamics of consumer prices and due to substantial weakening of devaluation expectations the Central Bank of Russia continues to estimate the tendency on lowering the rates of inflations as quite stable thanks to the absence of fundamental grounds, which might contribute to acceleration of the growth of prices during the last months of 2009, as compared with the same dynamics in 2008.

Although the decision on lowering the refinancing rate, made by the Central Bank of Russia, led to decrease of the interest rates in the inter-bank market, the interest rates on the credits for real sector of economic remained rather high. The index of industrial production in August came down as compared with July 2009. The aggregated credit to Russian economics wasn’t practically changed in September. Thereby the interest rate policy of the Central Bank of Russia is aimed at formation of positive tendencies in economics and first of all in sphere of the bank sector’s activity.

The further steps of the Central Bank of Russia on lowering the interest rates will be defined by the necessity to create conditions for wider crediting and stimulation of economic upsurge taking the development of inflation tendencies into account.