Refinancing rate of the Central Bank of the Russian Federation for today and for all years (from 1992 to 2022)

From 01/01/2016, the value of the refinancing rate of the Central Bank of the Russian Federation is equal to the value of the key rate of the Bank of Russia on the corresponding date. Since 01/01/2016, an independent value of the refinancing rate is not established and is not indicated on the Bank of Russia website.

Refinancing rate / Key rate / of the Bank of Russia for today, i.e.
from 02/28/2022 - 20.0% . The Extraordinary Board of Directors of the Bank of Russia, held on February 28, 2022, decided to increase the key rate to 20.0% per annum. The validity period for this rate has not yet been established.

And since after December 31, 2015, the value of the refinancing rate corresponds to the key rate and is not set separately by the Bank of Russia, therefore, starting from February 28, 2022, the refinancing rate will also be 20.0%.

The previous key rate of the Bank of Russia was 9.50% and its validity period lasted 14 days (from 02/14/2022 to 02/27/2022).

The previous unofficial refinancing rate was also in effect from February 14, 2022 to February 27, 2022 and corresponded to the key rate of this period (9.50% per annum).

The last refinancing rate officially established by the Bank of Russia was in effect from September 14, 2012 to December 31, 2015 and amounted to 8.25% per annum.

The transition to the key rate was made by the Board of Directors of the Bank of Russia, which is set out in the Directive of the Bank of Russia dated December 11, 2015 No. 3894-U “On the refinancing rate of the Bank of Russia and the key rate of the Bank of Russia”).

Refinancing rate of the Central Bank of the Russian Federation from February 28, 2022

On February 28, 2022, the extraordinary Board of Directors of the Bank of Russia decided to increase the key rate to 20.0% per annum.
The refinancing rate (unofficial) will also be 20.0% per annum. According to the forecast of the Bank of Russia dated February 11, 2022, taking into account the current monetary policy, annual inflation should have decreased to 5.0–6.0% in 2022 and returned to the target in mid-2023. In the future, annual inflation was planned to be around 4%.

When deciding to increase the key rate/refinancing rate to 20.0%, the Board of Directors of the Bank of Russia proceeded from the following:

External conditions for the Russian economy have changed dramatically.
An increase in the key rate will ensure an increase in deposit rates to the levels necessary to compensate for increased devaluation and inflation risks. This will help maintain financial and price stability and protect citizens’ savings from depreciation. The Bank of Russia will make further decisions on the key rate based on an assessment of risks from external and internal conditions and the reaction of financial markets to them and taking into account the actual and expected dynamics of inflation relative to the target, economic development over the forecast horizon.

The next meeting of the Board of Directors of the Bank of Russia, at which the issue of the level of the key rate will be considered, has not yet been scheduled. The time for publishing a press release on the decision of the Board of Directors of the Bank of Russia is 13:30 Moscow time
.

How does setting a new rate affect the economy?

When the refinancing rate decreases, commercial banks are more willing to lend to households and businesses on more favorable terms. But this does not happen immediately, but after a certain period of time, usually several months. Commercial banks are more willing to take out loans from the Central Bank of the Russian Federation at a low rate, develop competitive lending programs, and citizens decide to take out loans to fulfill their needs.

Thus, there is more money in circulation in the country, economic growth and development begins. Citizens have funds for purchases, growth in sales volumes stimulates production, production takes out loans from the bank to increase capacity. Banks earn on interest on loans issued to individuals and businesses.

Since the economy is cyclical, periods of growth and decline are inevitable. The task of the Central Bank is to regulate processes occurring in the state through the key rate. If demand is too high, producers may raise prices, which will trigger an increase in inflation in the country. In this case, money gradually loses purchasing power and depreciates. The well-being of families is declining, which causes dissatisfaction among the majority of citizens.

To reduce the degree of indignation and stabilize inflation, the Central Bank is raising the key rate. Loans automatically become unprofitable for the population and business, and the number of issued loans is rapidly declining. There is less “extra” money in circulation for unnecessary spending, and the demand for goods decreases. This causes a drop in the market and turnover among manufacturers, and they begin to reduce prices for goods. The situation is leveling out and stabilizing.

Dynamics of the refinancing rate of the Central Bank of the Russian Federation until the end of 2015.

Refinancing rates of the Central Bank of the Russian Federation

*The value of the Bank of Russia refinancing rate from January 1, 2016 is equal to the value of the Bank of Russia key rate on the corresponding date. From 01/01/2016, an independent value of the refinancing rate is not established.

Decisions made by the Bank of Russia on the refinancing rate

The Board of Directors of the Bank of Russia made the decision to improve the system of monetary policy instruments on September 13, 2013. Based on this decision, the key rate began to play the main role in the bank’s policy, and the refinancing rate played a secondary role and is given for reference. In addition, the Board of Directors of the Central Bank decided that in the period from September 13, 2013 to January 1, 2016, the refinancing rate will be adjusted to the level of the key rate.

Since 01/01/2016, the refinancing rate on the website of the Central Russia of the Russian Federation is no longer given for reference, since it now corresponds to the key rate.

The decision to adjust the refinancing rate was made on December 11, 2015

The Bank of Russia together with the Government, which provides for the following:

• from January 1, 2016, by decision of the Board of Directors of the Bank of Russia dated December 11, 2015, the value of the refinancing rate is equal to the value of the Bank of Russia key rate determined on the corresponding date and further its independent value is not established. In the future, changes in the refinancing rate will occur simultaneously with changes in the key rate of the Bank of Russia by the same amount.
• from January 1, 2016, the Government of the Russian Federation will also use the key rate of the Bank of Russia in all regulations instead of the refinancing rate (the order was signed by the Prime Minister of Russia D. Medvedev).

The material has been adjusted based on data from the Central Bank of the Russian Federation dated February 28, 2022.

Comments: 4

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Author of the article Irina Rusanova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Victor
   01/02/2022 at 18:47 +11 p.p. to the base rate of Raiffeisen Bank what does this mean
   Reply ↓ Olga Pikhotskaya
   01/02/2022 at 20:14

   Victor, hello. Today, the base rate of 5.99% per annum is valid for all categories of clients participating in the life / health / job loss insurance program. Termination of participation in the program increases the rate by 11 percentage points.

   Reply ↓