The Board of Directors’ Decision on the Bank of Russia Interest Rates
The Bank of Russia External and Public Relations Department informs that on 15 March 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 February and in the beginning of March 2013 the pace of inflation was estimated at 7.3% over a year ago, which was in line with the Bank of Russia forecast of inflation exceeding the target range in the first half of 2013. High pace of inflation is mainly explained by the food prices growth and the dynamics of certain regulated prices and tariffs. The inflation rate staying above the target range for a prolonged period of time may affect economic agents’ expectations and thus poses inflation risks, in particular taking into account the planned increases in the natural monopolies’ tariffs.
The dynamics of the key macroeconomic indicators in January 2013 pointed to a continuing slowdown in economic growth. The growth rates of investment in production capacity remained subdued and the retail sales growth decelerated. The industrial output decreased. At the same time, economic confidence indicators remain overall positive and labour market conditions together with credit expansion provide support to the domestic demand.
Considering recent domestic and external macroeconomic developments the Bank of Russia judges that the current level of money market interest rates is appropriate for achieving the balance of the main macroeconomic risks. The Bank of Russia will continue to monitor inflation risks and the risks of the economy cooling down. In making monetary policy decisions the Bank of Russia will be guided by the inflation goals and economic growth prospects.
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 April 2013.
Interest rates on the Bank of Russia operations (% p.a.)
| 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.