Russia's Central Bank decided to keep its refinancing rate unchanged at 7.75% and left intact its interest rates, but hiked reserve requirements for banks from February 1, the bank said following a board meeting on Monday.
"This decision comes amid growing expectations of inflation and is meant to encourage capital inflow into Russia on the back of high world oil prices," a board statement said.
Last year's inflation hit 8.8% following abnormal heat and a drought, which pushed food prices up. The government's inflation target for this year is 7%. Deputy Economic Development Minister Andrei Klepach has said inflation will top 8% this year.
The Central Bank also raised reserve requirements on liabilities to non-resident legal entities from 2.5% to 3.5%, and on other liabilities from 2.5% to 3%.
MOSCOW, January 31 (RIA Novosti)
