CBR has not changed rates

MOSCOW (Reuters) - The Board of Directors of the Central Bank on Monday decided to retain the deposit and lending interest rates unchanged, but increased from February 1, 2011 reserve requirements for banks, said the regulator.

On February 1, 2011 reserve requirements on liabilities to non-resident legal entities in Russia and in foreign currencies increased to 3.5 from 2.5 per cent.

For obligations to individuals and other obligations reserve requirements are increased to 3.0 from 2.5 per cent.

“The decision taken in an increasingly inflationary expectations and the formation of the prerequisites for capital inflow into Russia in the back of high world oil prices,” - said the report by the CBR.

On the eve of the majority of economists polled by Reuters expect an increase in deposit rates of the CBR at 25 basis points.

First Deputy Chairman of the CBR Alexei Ulyukayev estimated the risk of inflation in Russia as high and said that this situation will continue until the end of the first half.

Head of Central Bank Sergey Ignatiev acknowledged that the acceleration of inflation provides a reason to raise rates.

The refinancing rate is at 7.75 percent per annum, the rate on overnight deposits - 2,75 percent.