On Interest Rates on Bank of Russia Suspended Operations
On 3 April 2014 the Bank of Russia Board of Directors decided to raise the interest rates on Bank of Russia suspended operations by 1.5 percentage points. The decision has been taken to ensure that the interest rates on suspended operations were in line with the current level of the Bank of Russia key rate since they are presently used to calculate cash flows for some financial instruments in Russia.
However, the Bank of Russia sees no rationale for continuing to set interest rates on suspended operations as they might distort monetary policy signal. Starting from 25 July 2014 the Bank of Russia will cease to set interest rates on above-noted operations, except for
The transition period is provided to allow financial market participants to accordingly adjust their methods for calculating cash flows linked to interest rates on the Bank of Russia suspended operations.
Interest rates on the Bank of Russia suspended operations (% p.a.)
| Purpose | Type of instrument | Instrument | Term | Rate since 11.06.13 |
Rate since 04.04.2014 |
| Liquidity provision | Standing facilities (fixed interest rates) | Lombard loans | 1 week | 6.50 | 8.00 |
| 30 days | 6.50 | 8.00 | |||
| REPO | 1 week | 6.50 | 8.00 | ||
| 12 months | 7.25 | 8.75 | |||
| Open market operations (minimum interest rates) | Lombard auctions | 1 week | 5.50 | 7.00 | |
| 3 months | 6.50 | 8.00 | |||
| 6 months | 7.00 | 8.50 | |||
| 12 months | 7.25 | 8.75 | |||
| REPO auctions | 3 months | 6.50 | 8.00 | ||
| 6 months | 7.00 | 8.50 | |||
| 12 months | 7.25 | 8.75 | |||
| Liquidity absorption | Open market operations (maximum interest rates) | Deposit auctions | 1 month | 5.75 | 7.25 |
| 3 months | 6.50 | 8.00 | |||
| Standing facilities (fixed interest rates) | Deposit operations | 1 week | 4.50 | 6.00 | |
| 1 month | 4.50 | 6.00 |
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