|Unit||% p.a., NSA|
|Adjustments||Not Seasonally Adjusted|
|Data||31 Jan 2023||7.5|
|30 Jan 2023||7.5|
|Lending Rate||31 Jan 2023||7.5||7.5||Percent, NSA||Daily|
|Monetary Policy Rate||31 Jan 2023||7.5||7.5||% p.a., NSA||Daily|
|Stock Market Index||30 Jan 2023||987.39||992.37||Index, NSA||Business Daily|
|Average Long-term Government Bond||27 Jul 2022||9.21||9.13||% p.a., NSA||Business Daily|
|Treasury Bills (over 31 days)||27 Jul 2022||6.97||6.98||% p.a., NSA||Business Daily|
|Money Market Rate||2016||8.74||6.8||%||Annual|
Monetary policy constitutes an integral part of the state policy and is aimed at enhancing wellbeing of Russian citizens. The Bank of Russia implements monetary policy in the framework of inflation targeting regime, and sees price stability, albeit sustainably low inflation, as its priority. Given structural peculiarities of the Russian economy, the target is to reduce inflation to 4% in the following years and maintain it within that range in the medium run.
The monetary policy affects the economy through interest rates, its main parameter being the Bank of Russia key rate. Taking into account the pass-through effect of the monetary policy on the economy, central bank decisions are based on the economic outlook and assessment of risks to achieve the inflation target over the mid-term horizon, and also on possible threats to sustainable economic growth and financial stability.
The Bank of Russia maintains energetic communication policy, clarifying the motives and expected outcome of its monetary policy decisions, as public awareness of these efforts may enhance their effectiveness.
Refinancing rate is a monetary instrument used by the Central Bank of the Russian Federation (CBR) to influence interbank market rates and credit institutions lending and deposit rates. The refinancing rate is the rate also used by the CBR for extending overnight secured credits. Until august 2013, it was used as the primary key rate in Russia's monetary policy framework.
Since September 2013, the cost of one-week borrowing, rather than for one day, offiicially becomes the monetary policy benchmark rate. This decision puts the previously official key rate - Refinancing rate- in the middle distance. The key CBR rate is used by the banks to decide on their own interest rates policy, which ultimately translates into the cost of borrowing for both companies and individuals.
Since the key rate decides the ultimate borrowing costs in the economy, it’s essential that it should better reflect inflation. The refinancing rate is expected to match the new key rate by 2016 and it will take two years to ammend legislation, where the refinancing rate is widely used.
One week auctions have become more important than daily repurchase operations and the cost of a week’s borrowing corresponds with economic fundamentals much better.
Data are not revised.
Starting January 1st, 2016, the source has set equal the refinancing rate to the Bank of Russia Key rate. The refinancing rate will be changed simultaneously with the key rate without any separate notice or press-release.