The Bank of Russia September 6, will hold a weekly Deposit auction for a period of one week, according to the website of the regulator. This is the third Deposit auction in early August, and the second was held last week.
The Central Bank resumed its Deposit auctions August 9 — after a break of one and a half years — amid the influx of liquidity into the banking sector via the budget channel in the beginning of the month. Deposit auctions allows to absorb excess liquidity from the banks and creates the conditions for holding Deposit rates close to the key.
In the first auction, which was attended by 62 the Bank, the regulator has attracted deposits of 100 billion rubles. under of 10.22% per annum. In the second, held on 30 August with the participation of 76 banks — 221 billion. under of 10.41% per annum with the prescribed limit of 280 billion rubles.
The CBR in late August predicted that in the coming months, the probability of formation of short-term excess liquidity and holding Deposit auctions will be reduced on the background of the seasonal dynamics of cash in circulation and budget flows and increase the need for banks to attract additional money in connection with the adopted in June the decision on increase of norms of obligatory reserves. The regulator noted that by the end of this year in the event of significant changes in the dynamics of these factors on the weekly horizon may require not only the provision but also absorb liquidity, the Central Bank said.
The third Deposit auction in early August — an unexpected step, considering that since the beginning of August, the Central Bank has attracted quite a lot of money, says chief economist, head of the center for macroeconomic analysis of Alfa-Bank Natalia Orlova. “The important factor is the price at which they take the money. The last time they offered a rate of 10.41% with the key rate to 10.5%. The regulator provides a sufficiently high rate, the money withdrawn from the banks, that is taking funds dearly, so they do not put a downward pressure on interest rates has not caused the acceleration of credit growth,” she said in an interview with RBC.
According to analysts IK “Veles the Capital” the Central Bank may extend the limit in the forthcoming Deposit auction — “given the inflow of budget liquidity at the beginning of the month.” At the end of last week, remains at the CBR again is increased by budget liquidity, but to repay the debt on REPO with a fixed rate the credit institution are not in a hurry, experts say. So, on Friday, September 2, the remains of liquidity of banks at correspondent accounts and deposits in CBR added almost 180 billion rubles, returning to the already familiar to system 2 trillion the banks are in no hurry to direct the inflow of budget funds for repayment of debt under REPO transactions with a fixed rate. In this instrument the debt only decreased by 6.6 billion rubles to the 127.4 billion rubles.