CB: The rate increase will make attractive bank deposits – Russian newspaper

CB: The rate increase will make attractive bank deposits – Russian newspaper

Today’s increase in the key rate of the Central Bank will lead to lower inflation expectations, as well as increase the attractiveness of bank deposits to the population. This was told the head of the Bank of Russia Elvira Elvira.

“In order to limit the negative effects of the depreciation of the national currency, we have decided to raise its key interest rate from 10.5 to 17 percent. This decision is aimed at reducing inflation and inflationary expectations “- she said.

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According to Elvira Nabiullina, the weakening of the ruble primarily affect external factors. We are talking about reducing oil prices and limiting domestic banks for lending abroad. However, the influence of these factors can snivelirovat, in particular, using the recently introduced free floating regime for the ruble, said Nabiullina.

Together with the increase in the key rate can make the strategy of currency speculators already on the domestic market more risky. According to the head of the Central Bank, the current weakening of the ruble will be a signal for the Russian economy to adapt to new economic conditions.

“We must learn to live in the new area, navigate to a greater extent on its own sources of funding projects and give a chance for import substitution “- said Nabiullina.

Also, she said, raising the key rate mega-regulator will not be restricted to the development of Russian investment projects aimed at supporting small and medium enterprises and export of raw materials.

In addition, according to Elvira Naubillinoy, it is important to note that the increase in the key rate will lead to higher interest rates on deposits in banks. “For the citizens will be attractive to keep funds on ruble deposits,” – said the head of the Central Bank.

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In Tuesday the Bank of Russia decided on a sharp increase in the key rate by 6.5 percentage points – to 17 percent. “This decision was driven by the need to limit significantly increased in recent devaluation and inflation risks”, – explained in the CBA.

On the eve of the first deputy chairman Ksenia Yudaeva said that mega intends to maintain a tight monetary policy in 2015 .

According to its forecasts, inflation could rise in the first quarter of next year to 11.5 percent. And yesterday the ruble per trading day on the stock exchange fell against the dollar and the euro by about 6-7 rubles. In general, since the beginning of the year the ruble sank against the dollar and the euro nearly doubled.