Friday, March 25, 2011

Russian Central Bank Holds Refi Rate at 8.00%

The Bank Rossii decided to hold its main policy rate, the refinancing rate, at 8.00%, while increasing required reserves for banks. The Bank raised the mandatory reserve requirements for liabilities by 100bps to 5.5% from 4.5% for non-resident companies, and added 50bps to 4.0% from 3.5% for all others. The Bank said: "The decision was made based on the continued high inflation expectations and risks to the stability of economic growth,". Bank Rossii raised its key rates by 25bps last month. Russia reported consumer price inflation of 9.4% as of March 21, compared with 9.5% in February, compared to the Bank's target of 6% to 7%.


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