18 Jan 2011 16:37

CB's Melikian says Jan rate hike would not make sense

TULA. Jan 18 (Interfax) - It would not make sense to hike interest rates in January, Central Bank First Deputy Chairman Gennady Melikian told reporters.

"Any tightening of policy would put pressure on capital outflow and inflation, but also affect industry, which would slacken. Everything needs to be done in moderation. I'd not put rates up yet," Melikian said.

The CB raised deposit rates a quarter of a percentage point as of December 27, while leaving the refinancing rate at 7.75% per annum and lending rates on hold. This was the seventh time in succession that the CB decided to leave refinancing and credit rates on hold. The bank last lowered these rates on June 1, 2010, by a quarter of a percent. The bank had lowered the rates on 14 occasions since April 2009.

The CB directors next meet to discuss rate policy at the end of January.