Russia Interest Rate

The benchmark interest rate in Russia was last recorded at 8 percent. Interest Rate in Russia averaged 6.49 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. Interest Rate in Russia is reported by the Central Bank of Russia.


Russia Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
8.00 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 Raises Key Rate to 8%

Russian central bank hiked its benchmark one-week repo rate by 50 bps to 8 percent on July 25th, aiming to curb high inflation caused by geopolitical tensions. Policymakers also said that the interest rates could rise further if high inflation risks persist.

Excerpts from Information Notice of Bank of Russia:

Inflation deceleration in July 2014 has been slower than expected. At the same time, inflation risks have increased due to a combination of factors, including inter alia, the aggravation of geopolitical tension and its potential impact on the ruble exchange rate dynamics, as well as potential changes in tax and tariff policy. The build-up of these risks will lead to inflation expectations remaining heightened and creates threats of inflation exceeding the target in the coming years. The adopted decision is aimed at slowing the consumer price growth to the 4.0% target level in the medium term. If high inflation risks persist, the Bank of Russia will continue raising the key rate.

Over Q2 2014 the moderate recovery of economic activity has been observed. According to the Bank of Russia estimates, the GDP growth rate was close to zero in Q2 following negative figures earlier. Low economic growth rates are largely caused by structural factors. Utilization of production factors — labor force and commercially viable production capacities — is high. Labor productivity growth is sluggish. Due to the demographic trends labor force shortage will continue to affect economic growth in the long term. Along with structural factors, external political uncertainty has a negative impact on economic activity. Investment demand remains weak amid low business confidence, limited access to long-term financing in both international and domestic markets, and declining profits in the real sector. Besides, consumer activity is cooling. Economic slack in most countries that are Russia’s trading partners does not contribute to acceleration in economic growth. At the same time, persistently high oil prices support domestic economy.

Under the scenario of no negative shocks, annual inflation will decline in the second half of 2014. The factors of inflation decline are exhausted impact of ruble depreciation seen in January-March 2014 on consumer prices, lower scale of increase in administered prices and tariffs, expected good harvest, as well as subdued aggregate demand with aggregate output of goods and services remaining below potential. At the same time, there is an increased probability of negative trends which may result in inflation acceleration. These shocks include aggravation of geopolitical tension, adjustments in monetary policy of foreign central banks and the potential impact of those factors on national currency exchange rate dynamics, tax and tariff policy changes under discussion. Against this background the adopted decision will set conditions for a decline in annual consumer price growth rates to 6.0-6.5% by the end of 2014 and to the target level of 4.0% in the medium term. If high inflation risks persist, the Bank of Russia will continue raising the key rate.

Central Bank of the Russian Federation | Joana Taborda |
7/25/2014 11:06:26 AM

Recent Releases

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. Published on 2014-06-16

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

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
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 10:40 AM Russia
Interest Rate Decision
8.0% 7.5% 7.5% 7.5%
2014-09-12 10:30 AM Russia
Interest Rate Decision
8.0% 7.5%

Money Last Previous Highest Lowest Unit
Interest Rate 8.00 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 1072.80 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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