Russia’s Central Bank has left its key refinancing rate unchanged at 7.75 percent due to slowing inflation, in line with analysts' expectations.
"If current macroeconomic trends persist, the current refinancing rate level and the level of deposit operations rates is seen by the Bank of Russia as securing the balance between available loan funds and inflation risks determined by monetary factors in the next few months," the bank said in a statement on Friday.
Inflation continued to slow down in June and July with the annualized rate amounting to 5.7 percent as of July 26. The bank said its inflation risks forecast provided no reason for a monetary policy revision.
The bank also said unemployment was falling and real wages increasing, creating conditions for a domestic demand recovery.
"Given that the unemployment rate has already reached its pre-crisis level, further falls may become a sign that the economy is returning to growth," the central bank said.
The bank also noted an increase in investment in fixed assets, retail sales and bank lending.
"However, consumer lending remains below pre-crisis levels, while households' deposits volume continues to grow. The trends show there is still potential for a rise in domestic demand on the back of falling household appetite for saving and higher credit activity," the bank said.
The bank’s next board meeting will take place in August, it said.
MOSCOW, July 30 (RIA Novosti)