What is the key rate and how does it affect business

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We explain in simple terms why entrepreneurs’ incomes depend on it.

Image of the article What is the key rate and how does it affect business
The Central Bank of Russia regulates economic activity with the key rate. It directly affects inflation and the ruble exchange rate. In this article, we discuss how rate fluctuations affect business.

What is the key rate and how is it set?
What does the Central Bank's key rate affect?
When the rate is raised and what it means for business
When the rate is lowered and what it means for business
Summary of the article
What is the key rate?
The key rate, or KS, is the percentage at singapore telegram data which the Central Bank of the Russian Federation (CB) lends to commercial banks (CB) and also accepts funds from them for safekeeping. In other words, this is the cost of money for banks.

The key rate is determined by the Board of Directors of the Bank of Russia eight times a year, but there are situations when it does not wait for the next meeting and changes the percentage earlier - for example, if the ruble exchange rate falls sharply. Since 2013, the KS has been adjusted more than 50 times.