The Bank of Russia lowered the refinancing rate

Bank of Russia from June 1 for the fourth time in 2010 lowered the refinancing rate by 0.25% to 7.75% per annum. The regulator said that inflation in Russia is low. And this fact makes it possible to reduce the rate. This decision, the Bank of Russia hopes to support the launch of the growth of credit in the economy. Since the beginning of this year the refinancing rate decreased in the amount already at 1% - from 8.75% per annum. In 2009, the regulator, starting from April 10-fold reduced the key rate: the amount to 4.2% from 13.00% per annum. Betting operations of the Central Bank to provide funds since June 1, synchronously reduced by 0.25 percentage points, including the base rate of the Russian regulator (on overnight repo auction) dropped to a record low of 5.00% per annum. At the same time in conditions of excess liquidity the central bank decided to leave without changing the deposit rate "overnight", which determines the lower limit money market rates - at 2.5% per annum. At the same rate for deposit operations of the Central Bank for one week reduced immediately by 0,5 percentage points - to 2.75% per annum. We note that recently the chairman of the Russian Central Bank Sergey Ignatiev told the media that in his view, the acceleration of inflation in the summer will not be. We recall that yesterday the head of the Russian government Vladimir Putin said the Kremlin would be hard to track all the factors of growth of consumer prices, in particular, the tariffs of natural monopolies. According to the premier, Russia now has the lowest inflation in 20 years - up to five months it was 3.8%. According to the latest Federal State Statistics Service, consumer prices in Russia in May rose by 0.3% as at 24 May to 0.6% a year earlier, the growth since the beginning of the year slowed to 3,8% from 6,8% in 2009.