28 November 2011, Monday, 15:55

The Central Bank of Russia keeps the existing refinancing rate unchanged

author: Alfia Sharafutdinova

The refinancing rate remains the same in Russia, making up 8,25% of interest per annum for today. The directorate of the Central Bank of Russia  reached such decision on November 25,  its press-service reports.

“The abovementioned decision is made, basing on estimation of the inflation risks and the risks for stability of the economic growth, including the risks, anticipated by preservation of uncertainty in development of the external economic situation” — said in the Bank's press-release — “The disinflation effect fr om the drop of food prices has practically exhausted itself by the end of October and that became the main factor for slowing of the inflation speed in October and November”.

According to the Central Bank of Russia on November 21 the annual rate of the rise of consumer prices made up 7% (7,2% in October and September). Certain strengthening of Russian ruble, observed in October, results in lowering of the inflation risks, caused by ruble weakening in August and September. The toughening of the credit terms because of the transition of the bank sector to the shortage of cash, which is expected to be preserved in the nearest future, will also contribute to restrain of the inflation.

“The annual rate of the growth of industrial production in October dropped again, the level of unemployment in October slightly increased and the rates of growth of real incomes go down. At the same time the abovementioned showings are kept within the limits, which don't prevent the growth of the consumer demand and still high rates of retail trade circulation prove that” — the Central Bank of Russia stated.

The next gathering of the directorate of the Central Bank of Russia, wh ere the problems of the money-credit policy are to be considered, is expected to hold in the last decade of December 2011.

The present refinancing rate is acting since May 2011.