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 July 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 July inflation returned to the target range for 2012: as of 9 of July the pace of inflation was estimated at 5.0% over a year ago. Core inflation in June registered a minor change and amounted to 5.2%. Higher pace of inflation was attributed to the planned increase in the majority of regulated prices and tariffs as well as the accelerated growth of the food prices. The latter, combined with the uncertainty regarding crop prospects this year, became a source of additional inflation risks.
Still, according to the Bank of Russia estimates, gross output remains close to its potential level, which implies an absence of significant demand-pull price pressures. Retail sales growth rate remains high; labour market conditions together with household credit expansion continue to support robust domestic demand. The industrial production growth rate recovers and the investment activity shows positive dynamics.
Considering recent domestic and international macroeconomic developments the Bank of Russia judges that the current level of money market interest rates is appropriate for the near future. The Bank of Russia will continue to monitor inflation risks and the influence of global economic developments on the Russian economy. In making monetary policy decisions the Bank of Russia will rely on 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 decade of August 2012.
Interest rates on the Bank of Russia operations
(% p.a.)
| Purpose | Type of instrument | Instrument | Term | Rate since 18.06.12 |
| Liquidity provision | Standing facilities (fixed rates) | Overnight loans | 1 day | 8.00 |
| FX swaps (rouble rate) | 1 day | 6.50 | ||
| Lombard loans, REPO | 1 day, 1 week1 | 6.25 | ||
| Lombard loans | 30 days1 | 6.25 | ||
| REPO | 12 months1 | 7.75 | ||
| Loans secured by gold | Up to 90 days | 6.75 | ||
| From 91 to 180 days | 7.25 | |||
| From 181 to 365 days | 7.75 | |||
| 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 days | 8.00 | |||
| Open market operations (minimum interest rates) | REPO auctions | 1 day | 5.25 | |
| Lombard and REPO auctions | 1 week | 5.25 | ||
| 3 months | 6.75 | |||
| 6 months1 | 7.25 | |||
| 12 months | 7.75 | |||
| Liquidity absorption | Open market operations (maximum interest rates) | Deposit auctions | 1 week | 4.75 |
| 1 month1 | 5.50 | |||
| 3 months1 | 6.50 | |||
| Standing facilities (fixed rates) | Deposit operations | 1 day, 1 week1, 1 month2, call | 4.00 | |
| Refinancing rate | 8.00 | |||
| 1 Operations have been suspended. |
| 2 Interest rate has been set since 02.07.2012 |
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