The Central Bank of Russia lowered refinancing rate again
The PR-department of the Central Bank of Russia reports the refinancing rate will be lowered to 9,5% of interest per annum beginning from October 30, 2009. For the firs time in its history the Central Bank of Russia reduces the rate lower than 10% and this is already the eighth reduction of the rate in 2009.
It is said in the press-release of the Bank that this decision is reached for additional stimulation of credit activity of the bank sector of economics. Due to lowering of the rates on the Central bank’s operations the difference in the levels of short-term interest rates in the internal and external markets will be shortened and this in its turn reduces the attractiveness of short-term investments to the Russian assets and prevents accumulation of the risks in the stock exchange and currency markets.
This decision of the main bank of the country means that money in Russia will be slightly cheaper and commercial banks will pay less for the obtained credit resources, so the cost of the credits, given by the banks to population and legal persons will be lowered too. All that leads to the decrease of inflation but at the same time one has to expect that in the nearest future Russian banks will lower the yield of the population deposits, which maximal value reaches 16,4% of interest per annum now.