Prosecutor demands blogger get 3.5-year jail term for ‘catching Pokemon’ in churchSociety & Culture April 28, 11:51
Crew of Russian vessel that sank off Turkey's coast returns home — mediaWorld April 28, 11:38
Russian Airborne Force medics return from Syria after carrying out humanitarian missionsWorld April 28, 10:28
Syrian president says US foreign policy remains unchanged under TrumpWorld April 28, 10:10
Russian anti-submarine destroyer returns to Mediterranean after African voyageMilitary & Defense April 28, 10:02
Ecuador police calls teens, parents to beware of ‘Blue Whale’ suicide challengeSociety & Culture April 28, 8:00
China to begin construction of its own orbital station in 2019Science & Space April 28, 7:48
Syrian troops retake major gas field near Palmyra — mediaWorld April 28, 7:06
French giants Auchan, Peugeot face prosecution in Ukraine over work in CrimeaBusiness & Economy April 28, 6:13
MOSCOW, December 16. /TASS/. The regulator’s key rate hike to 17% will bring down inflationary expectations and help ease the negative effect of the ruble devaluation, Central Bank Chief Elvira Nabiullina said on Tuesday.
Russia’s Central Bank took a decision early on Tuesday to hike the key rate determining the borrowing cost for commercial banks to 17% from 10.5%.
“We have made a decision to raise the key rate to 17% from 10.5% to limit the negative effects of the national currency weakening,” the top banker said. “This decision is aimed at curbing inflation and inflationary expectations.”
Russia’s national currency is weakening primarily under the impact of external factors such as falling oil prices and restrictions for Russian banks to make borrowings on international markets, Nabiullina said. “We recently introduced a floating exchange rate for the national currency. It allows for mitigating the impact of external factors on the Russian economy.”
The ruble weakening is a signal for the Russian economy to adapt to new conditions, the Central Bank chief said. “We must learn to live in a new zone and be increasingly oriented at our own sources of financing and projects and give chances for import substitution,” Nabiullina said.
In order to prevent the restraining effect of the rate hike on the development of Russian projects, the regulator has kept unchanged special instruments and rates on them, the Central Bank chief said. “This relates to investment projects, project financing and projects aimed at supporting small and medium business and raw material exports,” she said.
Commenting on the ruble’s sharp devaluation on the domestic foreign currency market on Monday, the top banker said this had largely occurred under the impact of external factors. “We know this problem,” she said. “In the Central Bank’s estimates, Russian companies have the possibility to repay foreign debts. In order to mitigate this process, we are developing our instruments and lending foreign currency to them,” she said.