Russia sees possible start of rate cut trend

MOSCOW, April 15 (Reuters) - Russia’s central bank could cut the refinancing rate in the next few weeks and sees such a move as the possible start of a trend, the bank’s first deputy chairman said on Wednesday.

“It is most likely that it (planned rate cut) could be the start of a movement toward further rate cuts,” Alexei Ulyukayev told a meeting of industry lobby the Russian Union of Industrialists and Entrepreneurs.

The central bank also sees no need for additional capitalisation of the banking sector while the share of non-performing loans stays below 10 percent, he said.

But if the government has to take stakes in banks in order to help them withstand a decline in their capital, the best way to do this would be through buying preferred shares, he added. (Reporting by Toni Vorobyova, writing by Dmitry Sergeyev)