The Board of Directors’ Decision on the Bank of Russia Interest Rates (Unofficial translation)
The Bank of Russia External and Public Relations Department informs that on 13 March 2012 the Board of Directors of the Bank of Russia decided to maintain the refinancing rate and the interest rates on the Bank of Russia operations unchanged (table “Interest rates on the Bank of Russia operations”).
The decision was supported by the assessment of inflation risks and economic growth prospects, taking into account the global economic uncertainty.
In February and in the beginning of March 2012 inflation continued to decelerate: as of 5 March the pace of inflation declined to 3.7% over a year ago. The pace of core inflation also declined to 5.7% in February. The deceleration of inflation was supported by the planned deferment of an increase in the majority of regulated prices and tariffs until the middle of 2012 and the ruble appreciation observed in the last months. Still the Bank of Russia relies on the medium-term inflation forecasts in making monetary policy decisions.
The dynamics of the main macroeconomic indicators in January showed that the rates of growth in consumption were still higher than in production. Real wage growth rate remained high, partly due to its dynamics in the public sector of economy, while the rate of unemployment remained rather low. The consumer credit activity also stays robust. At the same time production growth rates remained moderate and economic confidence indicators kept rather weak in the recent months.
Considering recent domestic and international macroeconomic developments the Bank of Russia judged that the current level of money market interest rates within the interest rate corridor was appropriate in the coming months. The Bank of Russia will continue to monitor the money market conditions taking into account the deleveraging processes in the external financial markets.
The next meeting of the Board of Directors on monetary policy issues is planned to be held in the first decade of April 2012.
Interest rates on the Bank of Russia operations (% p.a.)
| Purpose | Type of instrument | Instrument | Term | Rate since 26.12.11 |
| Liquidity provision | Standing facilities (fixed rates) | Overnight loans | 1 day | 8.00 |
| FX swaps (rouble rate) | 1 day | 8.00 | ||
| Lombard loans, REPO | 1 day, 7 days1 | 6.25 | ||
| Lombard loans | 30 days2 | 6.25 | ||
| REPO | 12 months2 | 7.75 | ||
| Loans secured by gold | Up to 90 days | 6.75 | ||
| From 91 to 180 days | 7.25 | |||
| Loans secured by non-marketable assets and guarantees | Up to 90 days | 7.00 | ||
| From 91 to 180 days | 7.50 | |||
| From 181 to 365 days2 | 8.00 | |||
| Open market operations (minimum interest rates) | REPO auctions | 1 day | 5.25 | |
| Lombard and REPO auctions | 7 days | 5.25 | ||
| 3 months | 6.75 | |||
| 6 months2 | 7.25 | |||
| 12 months2 | 7.75 | |||
| Liquidity absorption | Open market operations (maximum interest rates) | Deposit auctions | 1 month | 5.50 |
| 3 months2 | 6.50 | |||
| Standing facilities (fixed rates) | Deposit operations | 1 day, 7 days, call | 4.00 | |
| Refinancing rate | 8.00 | |||
| 1 7 days fixed rates REPO operations have been suspended. |
| 2 Operations have been suspended. |
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