July 10, 2009 Board of Directors of the Bank of Russia has decided to decline from July 13, 2009 the refinancing rate at 0.5 percentage points to 11.0% per annum, as well as a reduction in rates on Bank operations in Russia.
Currently, the macroeconomic situation in Russia is characterized by the conditions, which calls for lower interest rates for refinancing operations and instruments sterilization of liquidity the Bank of Russia, said the Central Bank.
Consumer inflation in June 2009 was 0,6% against the previous month and 11.9% against the corresponding period of previous year to 12.3% in May.
Following the May 2009 industrial production of Russia's economy has declined relative to the corresponding period of previous year to 17.1%. At the same time reducing real disposable incomes, which in May 2009 was 1.3% compared with the corresponding period last year.
By improving the performance of credit activity emerged only for a select group of credit institutions, in particular, have received support in the anti-crisis measures, the report says.
The situation on the domestic foreign exchange market in June 2009 remained stable, owing to the cessation of growth in oil prices on world markets and the completion of correction of the economic agents of foreign currency assets. Under these conditions, tendency to strengthen the ruble against a basket of currencies is not observed, and the presence of the Bank of Russia in the domestic foreign exchange market was minimal.
Despite the steady reduction of the rates on instruments of monetary policy carried out by the Bank of Russia in April-June 2009, rates on loans to end borrowers remain at high levels. In May 2009, average interest rates on loans to non-financial organizations rubles for terms of up to 1 year was 15.9%.
In the current circumstances in order to stimulate lending activity of the banking sector, taking into account the slowdown in inflation and the end of the domestic foreign exchange market correction of the Bank of Russia has decided to further lower interest rates for refinancing operations and the tools to sterilize the liquidity of 0.5 percentage points.
Bank of Russia expects that this measure would create the conditions necessary to reduce lending rates of the ultimate borrowers and restoring credit activity of the banking sector.
At the same time in determining the future direction of interest policy of the Bank of Russia will take into account the development of inflationary pressures, the evolution of the credit activity of the banking sector, the state of financial markets, as well as the situation on the domestic foreign exchange market.
Interest rates on Bank operations in Russia,%:
| Lombard auctions (minimum interest rate) | 14 days 3 months 6 months 12 months |
9 10,25 10,75 11,25 |
8, 5 9,75 10,25 10,75 |
| direct repo auction on the basis of the (exchange and OTC) (minimum interest rate) | 1 day, 7 days
90 days |
8,5 9 10,25 10,75 11,25 |
8 8,5 9,75 10,25 10,75 |
| Credits overnight | Overnight | 11,5 | 11 |
| transaction currency swap (ruble part) | 1 day | 11,5 | 11 |
| Lombard loans (fixed rate) | 1 day, 7 days
30 days |
10,5 10,5 10,5 |
10 10 10 |
| Direct repurchase (at a fixed rate) | 1 day, 7 days
1 year |
10,5 10, 5 11,25 |
10 10 10,75 |
| loans secured by non-market assets or suretyship (fixed rate) | Up to 90 days from 91 to 180 days from 181 to 365 days |
10,5 11 11,5 |
10 10,5 11 |
| absorption of liquidity | |||
| Deposit transaction (fixed rate) | Tom-nekst, spot-nekst, on demand, One week, spot-week |
6,25 6,75 |
5,75 6,25 |
| Reference: | |||
| The refinancing rate | 11, 5 | 11 | |
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