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Bank deposit rate increase possible - Central Bank

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MOSCOW, March 22 (RIA Novosti) - Russia's Central Bank is refusing to rule out a further increase in deposit rates, Chairman Sergei Ignatyev said Wednesday.

Ignatyev said the Central Bank had already raised the overnight and seven days' notice rates by 0.5% in early March.

"A further increase is possible," Ignatyev said, adding that it would again not exceed 0.5%.

On March 6, the Central Bank raised the rate for Tom-next, spot-next and call deposits from 0.5% to 1% in annual interest, and from 1% to 1.5% for one-week and spot-week deposits.

"The increase is designed to slow inflation and was possible due to changes in the domestic and foreign economic situations, including the rate policy pursued by the U.S. Federal Reserve and the European Central Bank," the Bank said in a statement.

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