The board of directors of the Central Bank of Russia (CBR) has decided to increase its benchmark refinancing rate by 0.25 percentage points to 8.25%, according to a statement released by the regulator. The rates on other CBR transactions also rose 0.25 percentage points, RBC News reports.
The decision was made in view of an increase in consumer prices and inflationary expectations. According to CBR, Russia's inflation rate continued to climb in August and early September, as food prices and regulated housing and utilities tariffs continued to soar, reaching 6.3%, which exceeds the regulator's inflation forecast for 2012.
CBR pointed out that fixed capital investments and retail trade turnover slowed down in July, although industrial output resumed growth, adding that domestic demand is expected to remain stable.
The refinancing rate remained steady at 8% since December 23, 2011, when CBR decided to cut it by 0.25 percentage points.
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