“Russia, the largest emerging economy to raise interest rates this year, refrained from increasing borrowing costs after inflation unexpectedly slowed in October for the first time in six months.
Bank Rossii left the refinancing rate at 8.25 percent at a meeting in Moscow, half a percentage point above the record low, the regulator said in a statement on its website today. The move was forecast by 21 of 23 economists in a Bloomberg survey. Policy makers held their main short-term lending and deposit rates at 5.5 percent and 4.25 percent.
The decision follows a surprise increase in September that policy makers today credited for tamping down inflation expectations. The central bank also cited a stabilization in food costs that pushed price-growth beyond this year’s target range. The statement’s wording suggests an end to the “mini- cycle” of rate increases, according to Vladimir Kolychev, chief economist at Societe Generale SA’s OAO Rosbank (ROSB) unit in Moscow.”
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