Deposits are growing - the rates are falling - the Central Bank promises to continue

At a meeting with the President on Economic Affairs Central Bank chairman Sergei Ignatiev said that the deposits of the population is steadily growing. Household deposits in Russian banks in August, according to preliminary data, increased in nominal terms by 1.4%. "In August, according to our preliminary data, they increased by 1,4%. A little lower than it was in previous months, but the rate of growth of deposits is quite satisfactory" - said the head of the Central Bank. The head of Bank of Russia has promised to shortly re-lowered the refinancing rate. "It is likely that in the near future it will continue its decline," - he said. Sergei Ignatiev said that the central bank gradually lowers interest rates. Thus, the refinancing rate from April has been lowered five times - from 13.00% pa to 10.75%. Following the reduction in the rate of the Central Bank may reduce interest rates on deposits in commercial banks. To comfort investors have lowered forecasts of annual inflation in 2009 - "substantially lower" Economic Development and Trade forecast a 11.6 - 12.0 percent. This would allow a bit to protect the ruble deposits. The situation with ruble to the Russian Federation provides a basis to move to a regime of free floating and inflation targeting. "The ruble has been stable, with no clear trend of increasing or decreasing. But he has become much more flexible than a year or two ago," - said Ignatiev at a meeting with the president on economic matters. "We are gradually moving to a regime of free floating exchange rate and inflation targeting, which will enable us to more tightly control inflation", - said Sergei Ignatiev. Deposits were afraid of devaluation bank expects growth of funds banks in no hurry to lower interest on deposits Portal Bank.ru