Russian Central Bank Maintains 10.5% Annual Interest Rate

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Russian Central Bank Headquarters - Sputnik International
Russian Central Bank has kept its annual interest rate unchanged at 10.5 percent.

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MOSCOW (Sputnik) — Russian Central Bank has kept its annual interest rate unchanged at 10.5 percent, the financial regulator said in the press release Friday.

"The Bank of Russia's Board of Directors has decided on July 29, 2016 to keep the annual interest rate unchanged at 10.50%. The Board of Directors notes that the dynamics of inflation, and the outlined revival of economic activity mostly correspond to the baseline forecast of the Bank of Russia. However, the decline in inflation expectations has been halted. The decision and further maintenance of moderately tight monetary policy will contribute to achieving the inflation target," the statement reads.

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In addition, the regulator said that the annual inflation slowed down to the 7.2 percent as of July 25.

"Inflation slowed down in general in accordance with the basic outlook of the Bank of Russia. This is facilitated by several economic conditions: stable situation on the Russian financial market, maintaining a weak consumer demand, as well as the indexation of regulated prices and tariffs in accordance with the previously announced plans. The Bank of Russia estimates that the annual growth rate of consumer prices fell to 7.2% as of July 25, 2016," the statement reads.

On May 23, Russia announced a return to the international bond market, launching its first Eurobond offering in over two years. VTB Capital, a subsidiary of the Russian VTB Bank financial services corporation, had been designated to carry out the bond operations, with the 10-year bond yield reportedly set to be between 4.65 percent and 4.9 percent per year.

Later in May, Finance Minister Anton Siluanov said that Russia had raised $1.2 billion in the latest foreign Eurobond issue.

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