© Reuters. FILE PHOTO: A Russian state flag flies over the Central Bank headquarters in Moscow, Russia March 29, 2021. A sign reads: “Bank of Russia”. REUTERS/Maxim Shemetov
MOSCOW (Reuters) – The Russian central bank said on Monday it had provided banks with 20 million roubles ($260,205) at a one-year repo auction, having offered 100 billion roubles.
Repo, or repurchase agreement, auctions are designed to increase banks’ capacity to manage their liquidity.
Liquidity at such actions became more expensive after the central bank raised its key interest rate by 100 basis points to 9.5% on Friday. It indicated that a further rate increase was likely.
($1 = 76.8625 roubles)
Source: Investing.com
