Central Bank of Russia keeps rates on hold
MOSCOW. March 13 (Interfax) - Directors at the Central Bank of Russia Tuesday decided to keep the bank's refinancing rate and other key rates on hold, the CB said in a statement.
The refinancing rate is 8% pa.
"The decision was supported by the assessment of inflation risks and economic growth prospects, taking into account the global economic uncertainty," the CB said.
"In February and in the beginning of March 2012 inflation continued to decelerate: as of 5 March the pace of inflation declined to 3.7% over a year ago. The pace of core inflation also declined to 5.7% in February. The deceleration of inflation was supported by the planned deferment of an increase in the majority of regulated prices and tariffs until the middle of 2012 and the ruble appreciation observed in the last months. Still the Bank of Russia relies on the medium-term inflation forecasts in making monetary policy decisions.
The dynamics of the main macroeconomic indicators in January showed that the rates of growth in consumption were still higher than in production. Real wage growth rate remained high, partly due to its dynamics in the public sector of economy, while the rate of unemployment remained rather low. The consumer credit activity also stays robust. At the same time production growth rates remained moderate and economic confidence indicators kept rather weak in the recent months.
Considering recent domestic and international macroeconomic developments the Bank of Russia judged that the current level of money market interest rates within the interest rate corridor was appropriate in the coming months. The Bank of Russia will continue to monitor the money market conditions taking into account the deleveraging processes in the external financial markets," the CB said.
The next meeting of the Board of Directors on monetary policy issues is planned to be held in the first ten days of April 2012.