UPDATE 1-Russian sees weak demand for roubles at rare one-year repo auction

(Adds comment, one-month repo cancellation)

MOSCOW, June 22 (Reuters) - The Russian central bank on Monday sold 5.1 billion roubles ($73.5 million) at a one-year repo auction, its first such auction for many years, but cancelled a one-month auction, citing sufficient liquidity in the banking sector.

The central bank had said it would offer up to 400 billion roubles at the one-year auction, but the modest demand, at a cut off rate of 4.75%, suggested that the need for long-term rouble liquidity remains low.

Analysts said expectations of further monetary easing, after the central bank slashed its benchmark interest rate by 100 basis points to 4.5% on Friday, was behind the limited demand.

“The current level of liquidity in the Russian banking sector remains sufficient,” the central bank said.

“Nevertheless, the Bank of Russia will continue to hold long-term repo auctions as it does not rule out the possibility of liquidity distribution inequality in the banking sector increasing, while retaining the current rouble liquidity surplus.”

Repo, or repurchase agreement, auctions are held to increase the capacity of credit institutions to manage their liquidity.

$1 = 69.4200 roubles Reporting by Anton Kolodyazhnyy, Maria Grabar and Andrey Ostroukh; Writing by Alexander Marrow Editing by Katya Golubkova