Russia Interest Rate

The benchmark interest rate in Russia was last recorded at 7 percent. Interest Rate in Russia is reported by the Central Bank of Russia. Interest Rate in Russia averaged 6.47 Percent from 2003 until 2014, reaching an all time high of 10.50 Percent in April of 2009 and a record low of 5 Percent in June of 2010. 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. 2014-04-17

Actual Previous Highest Lowest Forecast Dates Unit Frequency
7.00 5.50 10.50 5.00 7.00 | 2014/04 2003 - 2014 Percent Monthly

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Russia Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-12-13 09:30 AM Russia
Interest Rate Decision
5.5% 5.5% 5.5% 5.5%
2014-02-14 09:35 AM Russia
Interest Rate Decision
5.5% 5.5% 5.5% 5.5%
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 11:00 AM Russia
Interest Rate Decision
7.0% 7% 7%
2014-06-16 09:30 AM Russia
Interest Rate Decision
7.25%
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Money Last Previous Highest Lowest Forecast Unit
Interest Rate 7.00 2014-03-14 5.50 10.50 5.00 7.00 2014-04-30 Percent [+]
Central Bank Balance Sheet 1146.00 2014-04-11 1021.50 1569.50 8.90 RUB Billion [+]
Foreign Exchange Reserves 486131.00 2014-03-31 493326.00 596566.00 4532.00 497863.24 2014-04-30 USD Million [+]
Interbank Rate 8.52 2014-04-30 7.98 190.89 3.99 8.25 2014-05-31 Percent [+]
Loans to Private Sector 28167112.00 2014-01-31 27911827.00 28167112.00 6179836.00 28388870.84 2014-02-28 RUB Million [+]
Money Supply M0 6699.90 2014-02-28 6663.10 6982.60 0.10 6700.84 2014-03-31 RUB Billion [+]
Money Supply M1 15020.35 2014-02-28 14742.60 15533.60 106.31 15211.22 2014-03-31 RUB Million [+]
Money Supply M2 30459.00 2014-02-28 30136.10 31404.70 1090.10 30733.87 2014-03-31 RUB Billion [+]
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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.

Excerpt from the statement by the Board of Directors:

Russian economy continues to slow down. Industrial production is stagnating. Investment activity remains low amid economic uncertainty, declining profits in the real sector and tightened non-price lending conditions. Consumer demand is still the major driver of economic growth. It is supported by still high growth in retail lending. However, a decline in consumer activity is observed against the backdrop of a slower real wages growth and of a deteriorating consumer sentiment. The aggregate output of goods and services remains somewhat below potential.

In February – early March 2014, the year-on-year growth rate of consumer prices rose and reached 6.4% as of 11 March 2014. Inflation acceleration was caused by the dynamics of prices for some food items, in particular, vegetables and fruit, along with dairy products. To some extent the rouble exchange rate dynamics has contributed to consumer price growth. In addition, core inflation did not decline in February 2014.

The inflation rates are unlikely to fall until mid—2014 due to the observed rouble depreciation. Against this backdrop inflation expectations may increase, exerting upward pressure on consumer prices. On the other hand, the reduction in the growth rates of administered prices and tariffs along with the aggregate output of goods and services remaining somewhat below potential would contribute to inflation slowdown in the second half of 2014.

The Bank of Russia estimates that the impact of observed rouble depreciation on economic growth will be limited. Amid increased uncertainty and declining producer and consumer confidence there is a strong probability of a reduction in fixed capital investment along with a further slowdown in consumption. As a result, Russian economic growth will be lower than expected. The noted factors will partially offset the exchange rate pass-through to inflation. Nevertheless, risks of above-target inflation in 2014 remain.

Given the current monetary policy stance, the slowdown in consumer price growth will resume in the second half of 2014. In the medium term inflation will decelerate to the target levels.

Central Bank of the Russian Federation | Joana Taborda | joana.taborda@tradingeconomics.com
3/14/2014 10:53:43 AM

RECENT RELEASES

Bank of Russia Raises Rates
Central Bank of Russia decided on March 3rd to temporarily raise interest rates by 1.5 percentage points due to an increased risk to financial stability and inflation. Published on 2014-03-03

Bank of Russia Leaves Rates on Hold
At its February 14th, 2014 meeting, the Bank of Russia Board of Directors decided to maintain the benchmark key rate at 5.5 percent, as the inflation is expected to be close to the target level by the end of 2014 amid slow economic growth. But the central bank also noticed that it would raise rates if the weakening rouble causes inflation to rise above mid-term targets. Published on 2014-02-14


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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