25 December 2009, Friday, 17:34
author: Elvira Latypova
The Central Bank of Russia again brings the refinancing rate down. Beginning from December 28 it will be equal to 8,75% and this is already the tenth lowering of the refinancing rate in 2009. On January 1, 2009, it was at the level of 13%.
The steps on alteration of percent rates are determined by development of inflation expectations, the dynamics of production and credit activity indices and by the state of the internal financial market.
Within the period from the 1st to the 21st of December the growth of consumer prices in Russia made 0,4%. The annual inflation went on coming down and on December 21 made 9% (the comparable last year index was 13,5%). The PR-division of the Central Bank of Russia reports that taking the favorable inflation expectations and the decision concerning reduction of percent rates into account the risk to exceed the official inflation forecast in 2010 is estimated as insignificant.
For today no significant improvements in credit activity of Russian banks are observed and lowering of the percent rates is called to soften the influence of the factors, hampering the economic upsurge, as it is expected. Besides, this measure will contribute to restriction of short-term foreign capital inflow to the country but at that the probability of the growth of volatility in the currency market and certain risks isn’t ruled out.