The RF CB carries out direct REPO auctioning
On 11 June, the RF CB declared that, from 15 June, it will carry out a direct REPO auction for the period of one year. It should be noted that over recent months the Bank of Russia has been gradually cutting the volumes of crediting without collateral issued to banks.
As the economic situation is stabilizing, the RF CB is switching over to issuing “long” credits with securities serving as collateral. In our opinion, this measure is absolutely correct and will be conducive to improving financial stability and increasing the Bank of Russia’s influence on interest rates.
P. V. Trunin – Candidate of Economic Sciences, Head of the Department for Monetary Policy
Thursday, 11.06.2009