Russia's Central Bank Leaves Rates Unchanged

Russia's central bank on Friday decided to retain its key interest rates unchanged as expected by economists, after a surprise reduction in December.

Bank Rossii maintained the refinancing rate at 8 percent. The rate was lowered by a quarter point in December, which was the first reduction in rates since 2010. The overnight deposit rate was retained at 4 percent and the repurchase rate at 5.25 percent.

The bank said the decision was supported by the assessment of inflation risks and risks of slowing economic growth. The appreciation of the ruble during January has some disinflationary effect.

The bank judged that the current level of money market interest rates within the interest rate corridor is appropriate to balance the inflation risks and the risks of economic growth slowdown in the coming months. (Provided by RTTNews)