Russia Interest Rate

The benchmark interest rate in Russia was last recorded at 7.50 percent. Interest Rate in Russia averaged 6.48 Percent from 2003 until 2014, reaching an all time high of 10.50 Percent in April of 2009 and a record low of 5.00 Percent in June of 2010. Interest Rate in Russia is reported by the Central Bank of Russia.

   
 
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Russia Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
7.50 7.50 10.50 5.00 2003 - 2014 Percent Monthly
In Russia, interest rate decisions are taken by the Central Bank of the Russian Federation. From September 16th of 2013, the official interest rate is the one-week auction repo rate. Until September 15th of 2013, the official interest rate was the refinancing rate, which was seen as a ceiling for borrowing money and a benchmark for calculating tax payments. This page provides - Russia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.


Russia Leaves Monetary Policy Unchanged


At its June 16th, 2014 meeting, Central Bank of Russia left its benchmark one-week repo rate on hold at 7.5 percent, following a 50 bps increase last meeting. Policymakers cited concerns over high inflation and hinted future rate hikes in case existing inflation risks materialize.

Extracts from Information Notice of Bank of Russia: 

In case existing inflation risks materialize, and threats to medium-term inflation targets emerge, the Bank of Russia will continue increasing the key rate. Significant inflation acceleration in February-May 2014 was prompted by a number of unforeseen factors, i.e. the considerable impact of exchange rate dynamics on consumer prices, as well as unfavorable conditions in the markets for some goods. Taking into account that monetary policy influence on the economy is distributed over time, inflation slowing to the 5.0% target in 2014 is unlikely. However, maintaining current monetary policy stance will ensure a slowdown in consumer price inflation to the target levels in the medium term.

The annual rate of consumer price growth is estimated at 7.6% as of 9 June 2014. Core inflation increased to 7.0% in May 2014. The main reason for inflation acceleration is the effect of the observed rouble depreciation on prices of a wide range of goods and services. Moreover, there were a number of specific factors affecting the markets for some food items and boosting their prices. Against this backdrop, household inflation expectations rose, which also had an impact on consumer prices.

So far the rise of the Bank of Russia key rate has had a small effect on bank lending and deposit rates, as well as on volumes of these operations. In March-April lending and rouble deposit rates slightly increased. However, rouble deposit growth rates continued to decline while lending growth rates, in contrast, kept increasing.

According to the Bank of Russia projections, in 2014 economic growth will slow down to 0.4%. Boost to economy from the observed rouble depreciation will be limited. Amid economic uncertainty and declining producer confidence this year there is a high probability of a reduction in fixed capital investment. The combination of slowdown in real wages growth and a decline in household lending growth rates will have a dampening effect on consumer activity. Net exports will make a positive contribution to economic growth. In the second half of 2014, economic growth is expected to accelerate slightly against the backdrop of alleviated geopolitical tension and improving producer sentiment.

Still, the risk of inflation exceeding the target remains high not only in the short term but also in the medium term. That risk is related to rouble exchange rate dynamics affected by, inter alia, monetary policy measures of the foreign central banks and geopolitical situation. Other sources of risk are inflation expectations dynamics, conditions in the food commodities markets as well as a possible revision of planned changes in administered prices. If these risks materialise and it puts medium-term inflation targets under threat, the Bank of Russia will continue increasing the key rate.

Central Bank of the Russian Federation | Joana Taborda | joana.taborda@tradingeconomics.com
6/16/2014 10:46:31 AM


Recent Releases

Bank of Russia Raises Key Lending Rate to 7.5%
Central bank of Russia unexpectedly raised its one-week minimum auction repo rate by 50 basis points to 7.5 percent citing greater than expected impact of rouble devaluation on inflation. Published on 2014-04-25

Russia Leaves Rate on Hold at 7%
At its March 14th, 2014 meeting, Bank of Russia decided to leave the benchmark interest rate unchanged at 7 percent, as inflation risks that brought about an increase in the key rate on March 3rd still apply. The central bank said it does not intend to lower the key rate in the coming months, as its priority is to contain the effect of exchange rate dynamics on consumer prices. Published on 2014-03-14


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-03-03 06:50 AM Russia
Interest Rate Decision
7.0% 5.5%
2014-03-14 09:50 AM Russia
Interest Rate Decision
7.0% 7.0% 7.0% 7%
2014-04-25 10:30 AM Russia
Interest Rate Decision
7.5% 7.0% 7% 7%
2014-06-16 10:30 AM Russia
Interest Rate Decision
7.5% 7.5% 7.5% 7.75%
2014-07-25 10:30 AM Russia
Interest Rate Decision
7.5% 7.5% 7.5%


Money Last Previous Highest Lowest Unit
Interest Rate 7.50 7.50 10.50 5.00 Percent [+]
Interbank Rate 9.00 9.05 190.89 3.99 Percent [+]
Money Supply M0 6763.10 6776.80 6982.60 0.10 RUB Billion [+]
Money Supply M1 14762.50 14834.70 15533.60 106.31 RUB Million [+]
Money Supply M2 30245.60 30160.00 31404.70 1090.10 RUB Billion [+]
Central Bank Balance Sheet 1089.10 1179.40 1569.50 8.90 RUB Billion [+]
Foreign Exchange Reserves 478250.00 467227.00 596566.00 4532.00 USD Million [+]
Loans to Private Sector 29366179.00 28801718.00 29366179.00 6179836.00 RUB Million [+]





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