INFORMATION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of January 15, 2013

The Department for External and Public Relations of the Bank of Russia reports that the Board of directors of the Bank of Russia made on January 15, 2013 the decision to leave the level of refunding rate and interest rates for transactions of the Bank of Russia (table "Interest Rates for Transactions of the Bank of Russia") without change.

The specified decision is made on the basis of assessment of inflation risks and perspectives of economic growth.

Interest rates for transactions of the Bank of Russia (% per annum)

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<1> Carrying out transactions is suspended.

In December, 2012 and the beginning of January, 2013 annual rate of surplus of consumer prices increased a little and, by assessment, made for January 9 6, % that above the target range on inflation. At the same time core inflation in December, 2012 decreased to % 5,7. Acceleration of growth of consumer prices was connected mainly with increase in growth rates of the prices of food products and services of passenger transport whereas increase in prices for nonfoods in December remained moderate. Preserving inflation rates above the target range during the long period of time can exert impact on expectations of subjects of economy and is source of inflation risks, despite the absence of, by estimates of the Bank of Russia, significant pressure upon inflation from the aggregate demand.

Dynamics of the main macroeconomic indicators in November, 2012 in general demonstrated preserving tendency to gradual chilling of economic activity. Growth rates of industrial production and retail turnover were stabilized, however remained low. At the same time growth of investments into fixed capital was slowed down. At the same time indicators of moods of subjects of economy remain rather positive, and the work market situation along with dynamics of crediting creates conditions for maintenance of the internal demand. By estimates of the Bank of Russia, cumulative release remains near the potential level. Considering preserving enough high growth rates of bank crediting, risks of essential delay of economic growth connected with toughening of monetary conditions are estimated as insignificant.

The Bank of Russia will continue monitoring of inflation risks, the external economic situation and effects of toughening of monetary conditions for the Russian economy. In case of decision making the Bank of Russia will be guided by the medium-term purposes on inflation and estimates of perspectives of economic growth, and also dynamics of inflation expectations.

The next meeting of the Board of Directors of the Bank of Russia at which questions of monetary policy will be considered is supposed to be held in the first half of February, 2013.

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