Russia Cuts Refinancing Rate to 7.75Pct

Russia's central bank yesterday cut its refinancing rate by 25 basis points to a new historic low of 7.75 percent, effective from Tuesday, taking the cumulative easing since April 2009 to 525 basis points.

The Bank of Russia said in s statement that the cut was needed to boost a still-shaky economic recovery in Russia and to stimulate lending against a background of moderate inflation.

It said there was a high degree of "uncertainty on the future external economic situation," adding that it would determine the bank's future policy on interest rate cuts.