INFORMATION OF DEPARTMENT FOR EXTERNAL AND PUBLIC RELATIONS OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 13, 2013

About interest rates for transactions of the Bank of Russia

The Department for External and Public Relations of the Bank of Russia reports that the Board of directors of the Bank of Russia made on September 13, 2013 the decision to lower loan interest rate "overnight" and on the credits provided with non-market assets or guarantees for the term of 1 day to the 6,50 level of annual interest rate and to raise maximum interest rate on deposit transactions on auction basis for the term of 1 week to the annual interest rate 5,50 level, having kept without change the level of rates on other transactions of the Bank of Russia and refunding rate. At the same time the system of tools of percentage policy is added with auction for loan granting, provided with non-market assets, on floating interest rate for the term of 3rd month. According to the solution of the Board of directors of the Bank of Russia the minimum spread to the level of single interest rate for transactions of provision and absorption of liquidity on auction basis for the term of 1 week (key interest rate) for credit auctions for the term of 3rd month is established in the amount of 0,25 of percent point (table "Interest Rates for Transactions of the Bank of Russia").

The specified decision is made on the basis of assessment of inflation risks and the prospects of economic growth and is neutral from the point of view of monetary policy orientation.

Growth rate of GDP in the second quarter significantly decreased 2013, first of all due to recession in the sector of the processing productions and construction. At the same time in July indicators of production activity and investment demand remained low. The consumer activity maintained by growth of real wage and retail crediting remains the main source of economic growth now. Unemployment remains at rather low level. By estimates of the Bank of Russia, risks of preserving low growth rates of the Russian economy in the medium term will be still connected with weak investment activity and slow recovery of the external demand.

In August and the beginning of September annual rate of surplus of consumer prices continued to decrease, but remained above the target range and, by assessment, for September 9, 2013 made 6, %. Decrease in growth rate of the prices of food products was partially leveled by acceleration of increase in prices for gasoline, and also dynamics of extra regulated prices and rates. Lack of the expressed pressure upon the prices from demand in the conditions of finding of cumulative release is slightly lower than the potential level is one of factors of decrease in core inflation in recent months. Following the results of August the year-on-year increase rate of core inflation constituted % 5,5. By estimates of the Bank of Russia, taking into account the expected improvement of situation in the food market in view of favorable data on harvesting of the main crops inflation until the end of the year will return to the target range. In 2014 in case of the current orientation of monetary policy and preserving observed macroeconomic tendencies inflation will continue decrease. At the same time purpose dlyadostizheniye on inflation in the medium term forming of positive tendencies in dynamics of inflation expectations is necessary.

By estimates of the Bank of Russia, taking into account internal and external macroeconomic tendencies the current level of rates of the money market provides on the near future balance between inflation risks and risks of low economic activity.

The Bank of Russia will continue monitoring of inflation risks and risks of delay of economic dynamics. In case of decision making the Bank of Russia will be guided by the purposes on inflation and estimates of prospects of economic growth.

The next meeting of the Board of Directors of the Bank of Russia at which questions of monetary policy will be considered is supposed to be held on October 14, 2013; expected time of the publication of the press release about the solution of the Board of directors of the Bank of Russia - 13:30 Moscow time.

Interest rates for the main transactions of the Bank of Russia (% per annum)

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