... a low key rate, it is easier for businesses to attract funds for scaling and promptly solving financial problems. A high rate, on the contrary, complicates access to financing, which can slow down development. For example, against the backdrop of a high key rate, many companies begin to postpone their investments, as loans become too expensive. This affects the demand for raw materials and final products, which ultimately slows down the entire economy. Conclusion: Why is it worth monitoring the key rate?...

... and investment. However, with a low rate, increased demand can lead to higher inflation. 3. Balance between inflation and economic growth The Central Bank 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 ...

The Central Bank of Russia has made a significant decision by lowering the key interest rate to 18%. This event marks the beginning of a new cycle of monetary policy easing. Economists and financial market experts ... ... Between 2023 and 2024, the Central Bank sequentially raised the rate from 7.5% to 21% per annum to curb inflation. However, such high borrowing costs began to slow down the economy: by mid-2025, GDP growth had significantly decelerated, and there were risks ...

... financial stability of banks, their profitability and attractiveness to investors? In this article, we analyze the causes and consequences of the current situation, forecasts for the banking sector and possible strategies for investors in the context of a high key rate. High Stakes and Revoked Licenses: What Awaits the Banking Sector in Russia? The banking services sector in Russia is currently under close scrutiny, with the Central Bank revoking the license of BCF (Bank of Corporate Financing), a decision that ...

... the Central Bank may lower the rate to support economic growth, make credit more accessible for businesses, and encourage investment. 3. Unemployment Rate The labor market situation and unemployment levels are important factors for monetary policy. High unemployment often signals economic weakness. In such cases, the Central Bank may lower the key rate to make credit more accessible for businesses, support their development, and, consequently, create new jobs. Conversely, low unemployment may prompt the Central Bank to raise rates to avoid inflationary pressure. 4. Fluctuations in the National ...