What factors influence the Central Bank's key rate? We examine how inflation, economic growth, exchange rates, the situation on world markets and other indicators determine the Central Bank's rate decisions. Find out why this important monetary policy instrument has such an impact on the economy and our daily lives. What Factors Influence the Central Bank's Key Rate? The key rate of the Central Bank (CB) is a vital tool of monetary policy,...

What is the Central Bank's key rate and how does it affect our daily lives? In simple terms, we will explain why the Central Bank sets the key rate, how it helps control inflation, stimulate the economy and affects loans, deposits and prices of goods. This article will help you understand ...

... Central Bank's forecasts for 2025? In this article, we will examine how this decision will affect economic stabilization, as well as analyze current macroeconomic indicators and future steps of the Central Bank in the context of global volatility. The Central Bank Lowers Rate to 18% - Initiation of Monetary Policy Easing Cycle The Board of Directors of the Bank of Russia decided on July 25 to lower the key interest rate by 2 percentage points, from 20% to 18% per annum. This marks the most significant single easing of ...

... strives to maintain a balance between economic growth and inflation control. If inflation is too high, it weakens people's purchasing power. If the rate is too low, there is a risk of overheating the economy and accelerating inflation. By managing the key rate, the Central Bank tries to stabilize prices, maintain a stable level of inflation and simultaneously stimulate economic growth. Personal view on the role of the key rate As the founder of Open Oil Market, I understand that fluctuations in the key rate can significantly ...

... profitability of the banking sector. While some banks, such as Sberbank, continue to show positive results, the overall situation signals a potential decline in the attractiveness of bank securities for investors. 4. Long-term Consequences of High Key Rate The Central Bank's high key rate, set to curb inflation, temporarily boosts the profitability of banking operations. However, this phenomenon may be short-lived, as perennial high rates can negatively affect lending and slow down economic growth in the country. For ...