The Russian central bank raised its main interest rates by a quarter of a percentage point, with effect from Feb.4, signaling it sees inflation as a bigger threat than concerns about a liquidity squeeze in the nation's money markets. The minimum rate for taking out one-day loans from the central bank in repurchase auctions will be raised to 6.25 percent, the Moscow-based bank said today.
The bank will also increase reserve requirements for banks' ruble and foreign currency liabilities to non-resident banks to 5.5 percent on March 1. The move appears to be aimed at discouraging Russian banks from raising their foreign debt levels.
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