Frequently asked questions
What is the current Bank of Russia key rate?
The Bank of Russia key rate is 14% per annum.
What is the central bank key rate?
The key rate is the interest rate at which the Bank of Russia lends to commercial banks and accepts deposits from them. It is the main monetary policy instrument: through it the central bank influences inflation and the cost of loans and deposits across the whole economy.
How does the key rate affect bond yields?
Yields on reliable bonds (OFZ, large corporate issuers) usually follow the key rate with a small premium. The higher the key rate, the higher the yield on new issues and the lower the price of already traded fixed-coupon bonds - and the reverse when the rate falls.
How often does the key rate change?
The decision is made by the Board of Directors of the Bank of Russia, usually 8 times a year on a pre-announced meeting schedule, but unscheduled meetings are possible during periods of high volatility.