25 Nov 2009 13:29

CB lowers refinancing and other rates by 0.5 of a percentage point

MOSCOW. Nov 25 (Interfax) - The Central Bank of Russia's board of directors have decided to lower the refinancing and other interest rates by 0.5 of a percentage point as of November 25, the CB said on Tuesday.

The refinancing rate was lowered from 9.5% to 9%.

This is the CB's ninth rate decrease for this year.

The minimum overnight REPO rate for the CB's daily auctions, which are an indicator of the real value of money on the Russian market, dropped form 6.75% to 6.25%.

Rates were reduced in order to increase access to loan resources and stimulate end demand for goods and services.

The CB was able to lower the rates thanks to positive inflation trends and a subsequent lowering of inflation forecasts.