9 Apr 2010 18:30

CB chief sees no need for narrowing spread between REPO and deposit rates

MOSCOW. April 9 (Interfax) - The Chairman of Russia's Central Bank, Sergei Ignatiev, still see no need in narrowing the spread between the rate on REPO operations with the CB and the rate for deposit operations.

"We are discussing this issue. There is still no agreement at the bank on which way to move and when. When to go is clear, the spread should decrease. But when I do not see any need to do this now," Ignatiev stressed.

He said that if the CB is not lowering its refinancing rates, it would be necessary to raise deposit rates so that spread narrows. Such a scenario could mean that additional foreign capital could be brought in, including speculative investment.