Russia’s central bank cut its refinancing rate at its main interest rate a quarter point or the equivalent of 0.25 percent to its lowest point to 7.75 percent. Pruning is done to support the country’s economic recovery is still fragile. As for cutting interest rates this is the fourteenth time in a row since April 2009.
The central bank said in a statement that the cuts are needed to encourage economic recovery is still volatile in Russia and to stimulate borrowing against the background of moderate inflation.
“Data on the main macroeconomic indicators of Russia shows a gradual recovery to economic growth. But there are also significant risks in the recovery of credit activity and economic growth,” he disclosed such data, as reported by the AFP on Tuesday (06/01/2010 ).
In the statement, the Russian Central Bank also said that if the uncertainty on the future of the external economic situation, adding that this policy will determine the future of the bank. In addition to reducing the bank policies that have been helped by lower inflation in Russia, where in May was recorded at 5.7 percent. For your information, the Russians had been hard hit by the global economic crisis, in which the economy contracted by 7.9 percent last year. But so far managed to avoid major problems that hit the countries that were hit by debt such as Greece.
Ministry of economic development for Russia’s growth estimated at four per cent this year followed the next year will grow by 3.5 percent in 2011. However, officials warned it took many years for this country to return to growth rates before the crisis.
Analysts said that while Russia seems to have passed this economic storm, its economy highly dependent and vulnerable to oil price fluctuations