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 15 January 2013 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.
In December 2012 and at the beginning of January 2013 the pace of inflation increased to some extent and as of 9 of January was estimated at 6.8% over a year ago, which exceeded the target range. Core inflation declined to 5.7% in December 2012. The acceleration of consumer price inflation was mainly driven by higher growth rates of food and passenger transport services prices, while the nonfood goods inflation remained moderate in December. The inflation rate staying above the target range for a prolonged period of time may affect economic agents’ expectations and thus poses inflation risks, despite the absence of any significant demand-pull price pressures, according to the Bank of Russia estimates.
The dynamics of the key macroeconomic indicators in November 2012 was in line with the previous trend towards gradual cooling of economic activity. The growth rates of industrial production and retail sales stabilized but remained subdued. The growth of investment in production capacity decelerated. At the same time, economic confidence indicators remain overall positive and labour market conditions together with credit expansion provide support to the domestic demand. According to the Bank of Russia estimates, the gross output remains close to its potential level. Taking into account still relatively high bank lending growth rates, the risks of a significant economic slowdown stemming from the tighter monetary conditions are considered minor.
The Bank of Russia will continue to monitor inflation risks, global economic developments and the consequences of the monetary conditions tightening for the Russian economy. In making monetary policy decisions the Bank of Russia will be guided by medium-term inflation goals and economic growth prospects, as well as the dynamics of inflation expectations.
The next meeting of the Board of Directors of the Bank of Russia on monetary policy issues is planned to be held in the first half of February 2013.
Interest rates on the Bank of Russia operations
| Purpose || Type of instrument || Instrument || Term || Rate since 11.12.12 |
| Liquidity provision || Standing facilities (fixed rates) || Overnight loans || 1 day || 8.25 |
| FX swaps (rouble rate) || 1 day || 6.50 |
| Lombard loans, REPO || 1 day, 1 week1 || 6.50 |
| Lombard loans || 30 days1 || 6.50 |
| REPO || 12 months1 || 8.00 |
| Loans secured by gold || Up to 90 days || 7.00 |
| From 91 to 180 days || 7.50 |
| From 181 to 365 days || 8.00 |
| Loans secured by non-marketable assets and guarantees || Up to 90 days || 7.25 |
| From 91 to 180 days || 7.75 |
| From 181 to 365 days || 8.25 |
| Open market operations (minimum interest rates) || REPO auctions || 1 day || 5.50 |
| Lombard and REPO auctions || 1 week || 5.50 |
| 3 months || 7.00 |
| 6 months1 || 7.50 |
| 12 months || 8.00 |
| Liquidity absorption || Open market operations (maximum interest rates) || Deposit auctions || 1 week || 5.00 |
| 1 month1 || 5.75 |
| 3 months1 || 6.75 |
| Standing facilities (fixed rates) || Deposit operations || 1 day, 1 week1, |
1 month, call
| 4.50 |
| For reference: |
| Refinancing rate || 8.25 |
1 Operations have been suspended.