Wednesday, April 30, 2008

Central Bank of Russia upgrades refunding rate

Central Bank of Russia upgrades refunding rate

29.04.2008, 12.53

MOSCOW, April 29 (Itar-Tass) - As of Tuesday, the Central Bank of Russia has upgraded the refunding rate from 10.25 to 10.5 annual interest. According the CBR, it was done to restrain inflation and slow down the money offer dynamics.

The current refunding rate rise is the second one since February. Earlier, it went down during 10 years.

The refunding rate is an instrument of money-credit regulation, with the help of which the CBR influence the interbank market rates, as well as deposit rates.

The refunding rate rise leads, in particular, to a rise in price of crediting juridical and physical persons, as well as to a rise in interest on deposits.

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