Russia Interest Rate

The benchmark interest rate in Russia was last recorded at 8.25 percent. Interest Rate in Russia is reported by the Central Bank of Russia. Historically, from 1991 until 2013, Russia Interest Rate averaged 50.66 Percent reaching an all time high of 210 Percent in April of 1994 and a record low of 7.75 Percent in June of 2010. In Russia, interest rate decisions are taken by the Central Bank of the Russian Federation. The official interest rate is the refinancing rate, which is seen as a ceiling for borrowing money and a benchmark for calculating tax payments. This page includes a chart with historical data for Russia Interest Rate.

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Bank Of Russia Maintains Benchmark Interest Rate Unchanged
Bank of Russia | Duarte Ricardo | duarte.ricardo@tradingeconomics.com  |  5/20/2013 9:33:32 AM


On May 15th, the Board of Directors of the Bank of Russia decided to maintain unchanged the refinancing rate and the interest rates on the Bank of Russia main liquidity provision and absorption operations and to reduce effective from 16 May 2013 the interest rates on certain longer-term operations by 0.25 percentage points.

Excerpt from the release by the Bank of Russia:

The decision was supported by the assessment of inflation risks and economic growth prospects. The cut in the interest rates on longer-term liquidity provision operations brings the cost of obtaining liquidity from the Bank of Russia by credit institutions closer to the interest rates on the Bank of Russia main liquidity provision operations, which will contribute to strengthening the interest rate channel of the monetary policy transmission mechanism.

In April and at the beginning of May the rate of inflation remained above the target range and as of 13 May 2013 was estimated at 7.2% over a year ago. Core inflation in April amounted to 5.7%. Observed pace of inflation is mainly explained by the food prices growth and the dynamics of certain regulated prices and tariffs. The inflation rate staying above the target range for a prolonged period of time may affect economic agents’ expectations and thus poses inflation risks, in particular taking into account the planned increases in the natural monopolies’ tariffs. However, according to the Bank of Russia projections based on the assumptions of maintaining the current monetary policy stance and absence of adverse food prices shocks, the rate of inflation will return to the target range in the second half of 2013.

The dynamics of the key macroeconomic indicators pointed to a continuing deceleration of economic growth in the first quarter of 2013. The industrial output did not increase as compared to the first quarter of 2012, investment activity stayed weak. Against this background economic confidence indicators are gradually deteriorating. There remain risks of further economic slowdown, stemming among other factors from the sluggish global recovery. At the same time, labour market conditions and credit dynamics still provide support to the domestic demand.

ARCHIVE
Bank of Russia Keeps Benchmark Rate Unchanged, Long-Term Rates Cut The Board of Directors of the Bank of Russia decided to maintain unchanged the refinancing rate and the interest rates on the Bank of Russia main liquidity provision and absorption operations and to reduce the interest rates on certain longer-term refinancing operations by 0.25 percentage points. 2013-04-02
Russia Interest Rate Unchanged in January The Bank of Russia External and Public Relations Department informs that on 15 January 2013 the Board of Directors of the Bank of Russia Decided to Maintain the refinancing rate and the Interest rates on the Bank of Russia Operations unchanged. 2013-01-15
Russia Central Bank Leaves All Policy Rates Unchanged According to the Bank of Russia External and Public Relations Department, the Board of Directors of the Bank of Russia decided to maintain the refinancing rate and the interest rates on the Bank of Russia operations unchanged in March of 2013. The decision was supported by the assessment of inflation risks and economic growth prospects. 2013-03-15
Russia's Central Bank Narrows Interest Rate Corridor On 10 December 2012, the Board of Directors of the Bank of Russia raised the interest rates on the fixed-term deposit operations by 0.25 percentage points, reduce the interest rate on the rouble leg of the Bank of Russia FX swap transactions by 0.25 percentage points and maintain the refinancing rate and the interest rates on the other Bank of Russia operations unchanged. 2012-12-11
Russia Interest Rate Unchanged in February According to the Bank of Russia External and Public Relations Department, the Board of Directors of the Bank of Russia decided to maintain the refinancing rate and the interest rates on the Bank of Russia operations unchanged in February of 2013 2013-02-12
Russia Raises Rates for Fourth Time to Stem Inflation Russia's central bank raised its benchmark interest rates by a quarter of a percentage point for the fourth time this year to subdue inflation. 2008-08-25



Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.






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