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. Last Updated: 07/27/2016

IMF Visit Not a Part of Rate Change




Central Bank Chairman Sergei Dubinin has denied that the decision to cut the bank's refinancing rate was in any way connected with ongoing talks with the International Monetary Fund, whose managing director, Michel Camdessus, arrived in Moscow on Tuesday.


Dubinin said the bank board of directors decided Monday to cut its refinancing rate and Lombard rate to 39 percent from 42 percent after assessing the situation on Russia's treasury-bill market.


"The IMF will no doubt take a skeptical look at whether domestic factors warranted such a decision. So our actions are unlikely to strengthen our hand in negotiations with the fund," Dubinin said.


A mission of IMF economists is currently in Moscow reviewing Russia's implementation of its $10.2 billion extended fund facility program.


Dubinin also said Tuesday that the Central Bank had no intention of softening its reserve requirements for commercial banks.


"The requirement is a more long-term measure of monetary policy and should not be reviewed too often," he said.