The central bank raised the refinancing rate

Central Bank on May 3 raised the refinancing rate by 0.25 percentage points - to 8,25%, and rates on individual transactions - also by 0,25 PP, reported on Friday, April 29, the Department of External and Public linkages of the CBR. The regulator says the decision "the high level of inflation expectations, exceeding the inflation target for this year." Central Bank also took into account "the ambiguous impact that might have on the Russian economy developments in global financial and commodity markets." "It is recognized that in a sustainable surplus liquidity in the banking sector, a key influence on the money market rates will continue to bid for deposit operations of the Bank of Russia. In addition, the narrowing range of interest rates the Bank of Russia operations to absorb liquidity provision and will enhance the effectiveness of interest rate policy ", - said in a statement. The Bank of Russia since the end of December 2010, after a six-month stabilization period, rates at historically lowest level, consistently tightens monetary policy. Twice (in December and February) to 0,25 percentage points deposit rates were increased in February to 0.25 percentage points increased interest rates on credit transactions. Then the lights for the first time since December 2008 raised the refinancing rate, also 0.25 percentage points to 8%. In the three phases for the three months were increased and differentiated reserve requirements: the banks' liabilities to non-residents by legal entities - up to 5,5% from 2,5% for other liabilities - up to 4,0% from 2,5%. Central Bank says that in April, inflationary pressure remains significant. On April 25, the rate of inflation in annual terms amounted to 9,6% (9,5% in February-March). In this case, the effect of shock in domestic prices for agricultural commodities, supported by strong growth in world food prices gradually fades. This is evidenced by the continuing slowdown in consumer prices in monthly terms, especially prices of some food products. The next meeting of the Board of Directors of the Bank of Russia, which will focus on issues of monetary policy, will be held in late May.