The Board of Directors of the Bank of Russia decided to raise the key rate by 10.5 percentage points from February 28 to 20% per annum. This should support financial and price stability and protect citizens’ savings from depreciation, the regulator said in a statement.
This is the historical maximum of the key rate. Prior to this, the rate of 17%, set in December 2014, was considered a record value.
“The Board of Directors of the Bank of Russia decided to raise the key rate from February 28, 2022 to 20% per annum. External conditions for the Russian economy have changed dramatically. An increase in the key rate will make it possible to ensure an increase in deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. This will help maintain financial and price stability and protect the savings of citizens from depreciation,” the message emphasizes.
Further decisions on the key rate will be made 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 inflation dynamics relative to the target, the development of the economy over the forecast horizon, the Central Bank added.
At 16:00 Moscow time, Elvira Nabiullina, Chairman of the Bank of Russia, is also expected to make a statement following the meeting of the Board of Directors of the Bank of Russia.