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MOSCOW, June 23 (RIA Novosti) - The Central Bank of Russia said Friday it would reduce the refinancing rate by 0.5% to 11.5% on June 26.
The refinancing rate is the interest rate the CBR sets when crediting commercial banks.
Sergei Ignatyev, the head of the Central Bank, said earlier that the CBR could cut the 12% refinancing rate established on December 26 last year by the end of 2006.
Alexei Ulyukayev, a deputy chairman of the CBR, said the bank would continue its line on cutting the rate. "In the future, we intend to continue the policy of reducing the refinancing rate depending on the reduction of inflation," he said, adding that a "normal" refinancing rate should exceed inflation by 1-1.5%.
