/IRBIS, October 29, 09/ - The Board of Directors of the Bank of Russia on Oct. 29, 2009 decided to reduce from 30 October 2009 the refinancing rate and interest rates on the individual operations of the Bank of Russia on 0.5 percentage points, indicated in the report published today by the central bank. Thus, the refinancing rate and the rate on overnight credits from October 30 reduced to the level of 9.5% per annum.

The decision taken by the Board of Directors of the Bank of Russia, first of all is in order to further stimulate the credit activity of the banking sector of the economy. The report stated that in October, remained the main trends in indicators of the monetary sphere. During the period from 01 to 26 October 2009, consumer prices in Russia have not changed, and the annual inflation rate was on October 26, 2009 9.9%. The Central Bank believes that in the coming months, annual inflation will remain below the official forecast.

In recent weeks, continues the trend appreciation of the ruble against the major world currencies. High level of nominal interest rates in Russia, the observed rise in oil prices and restore investors' propensity to take financial risks led to the inflow of foreign capital into Russia's financial market, requiring the Bank of Russia foreign currency interventions to prevent sharp ruble appreciation. Reducing differences in the levels of short-term interest rates on domestic and foreign markets by lowering interest rates on operations of Bank of Russia will reduce the attractiveness of short-term investments in Russia's assets and prevent the accumulation of risks in the stock and currency markets, - it was stated in message.

[2009-10-29]