considering the question of what is the key rate will be logical to note that this concept is relatively new instrument of monetary policy in Russia.The practice of using this tool is very common in the West, as it can be to have a significant impact on the currency.Taking into account the specifics of the Russian economy, and the key rate influences the peculiar situation in the country.
bit of history and the actual situation
studying the question of what is the key rate, it should be said that this is the price, which is used in the provision of financial support to the Central Bank of commercial financial institutions.The indicator is expressed as a percentage, which is calculated on credit provided by the Central Bank of smaller financial institutions.In Russia, the concept has appeared only in 2013.The main purpose of the introduction of this tool - is the implementation of process control inflation.Until 2013 it was decided to use for this purpose the refinancing rate.Modernization of financial policy was carried out due to the fact that the refinancing rate is no longer reflect the real situation on the resource market.The central bank determines how performance will correspond to the key rate.The refinancing rate, which differ from the COP has significant also formed the Central Bank.Revaluation of the COP on a monthly basis (based on the actual situation on the market).
How did the rate over time?
During the last year setting has been changed many times.Initially the index corresponded 5.5%.In the period from March to June 2014, he changed many times: 7%, 7.5% and 8%.At the end of October 2014 the size of the COP reached 9.5%.December 12 2014, due to a sharp rise in the dollar, the Board of Directors of the Bank of Russia converged on the record of 10.5%.Due to the fact that the rate change has not brought the expected results and the impact of the expected volume in the market was not there, 16 of the same month the rate has become 17%.February 2, 2015 it was lowered to 15%.At the last meeting, which was held on March 16 this year, it was decided to set the rate at 14%.
Which came first?
key rate of the Bank of Russia - this is an analogue of the refinancing rate.Today, CP is used for the calculation of fines, penalties and taxes.She has long remained at 8.25%.Previously she served as the starting point for determining the interest on loans, today it does not perform this function.Until September 13, 2013 CP is considered an important economic indicator that reflects the economic processes in Russia.A secondary task of CP remains today.It is used as an indicative figure for the analysis of the inflation rate and the overall market.The key rate of the Central Bank of the Russian Federation - is a tool that is almost completely replaced the CP as an indicator of the economic situation.
Influence COP on the situation in the country
changing the COP, the Russian government can control inflation.Raising the key rate leads to a rise in price of resources that occurs commercial financial institutions, there is a sharp increase in interest on deposits and loans.High interest rates make loans to individuals unavailable to the majority.Reduction of funds leading to a sharp drop in purchasing power.Pressure on the ruble is significantly reduced, inflation is suspended.If a country's economy is slowing down because of reduced production, it appears the phenomenon of deflation.Council of the Bank of Russia decides not to increase the key rate, and lower it.Loans are becoming more affordable, start lending to the real sector of the economy.The situation is equalized.
Features tool
studying the question of what is the key rate, is to say the absence of the instrument in the legislation of Russia.Her place still holds the refinancing rate, though its role is in fact quite unimportant.All limited calculation of sanctions, penalties and taxes.By the end of 2015, the COP should be fully replaced the Slovak Republic.The main advantage of using this tool is that it can be used to adjust the rate of inflation, therefore, have a very positive impact on the economic recovery of the state.Traders around the world are closely watching the CS major market players (USA, Switzerland, Japan, Canada and so on.).On the eve of the ad rates on the market can be seen greater volatility.If the rate of change, then there is a significant jump.The key rate of the Central Bank of the Russian Federation - a financial instrument that is not without drawbacks.It is said of his inertia and low efficiency in the crisis.With a sharp deterioration in the economic situation, especially if the impact on the state is to external factors, the rate change does not manage to harmonize the situation and the negative effects are manifested.
alternatives and prospects
considering the question of what is the key rate, it is worth saying that in times of crisis it is better to replace the command-and-control measures.It may be freezing rate or the state regulation of prices in the market.There may also tightened standards in the financial markets.If we consider the situation in the case of Russia, it becomes apparent that the rate increase to 17% did not bring the expected result, not only because of the impending devaluation of the ruble, but also because of the sanctions imposed by the West.A fundamental change in due to its low efficiency was soon reduced, first to 15% and then to 14%.At the current moment, there is no reason CBA to further raise rates.This decision can only lead to higher prices for banking products, which are still inaccessible because most of the population.If we consider that Russia is now doing its utmost to ensure the financing of the real economy, we can talk about further lowering of the COP.
Latest news on CA and changes in tax legislation
key rate of the Bank of Russia - a "secret weapon" of the Central Bank, which was introduced in monetary policy in order to improve its transparency.Recent critical rate increase to 17% was recorded in early 2015.As a result, commercial financial institutions began to actively raise rates, not only for loans, but also on deposits.At the same time, in accordance with the law, interest on ruble deposits, which is higher than the CP by 5 percentage points shall be subject to tax (PIT).If we consider that the CP after increasing the COP remained the same, deposits with a yield of more than 13.25% (which turned out to be the majority) became subject to the tax.Previously, the number of deposit programs with a yield of 13.25% was a minimum, the majority of them today.Almost all people who have deposits, fell under the personal income tax.
Workaround discrepancy
a result of legislative inconsistencies investors had to pay about 35% tax on profit.As a result of these developments, it was decided to make changes in the tax laws.Surcharge 5 percentage points has been changed to plus 10 percentage points.Ruble deposits with a yield of 18.25% are not subject to the tax system.Adopted privilege - it is a temporary solution, the validity of which expires on Dec. 31, 2015.It is planned to reduce the rate and the refinancing rate and the key rate to a single value.
What can tell COP?
As mentioned above, the COP - is an indicator of the state of the Russian economy.And to consider what is the key bank rate, you need to pay attention to the existence of correlations between the size and the state of affairs in the country.With a low interest rate can say that the ruble is very weak, and the rate of national currency too low.High interest rate shows a decline in the pace of economic development of the state in the near future.The amount of money in circulation, begins to decline, and the rate of national currency increases.If we consider that after a winter hike in Russian ruble slowed its decline, is now rationally say that the next reduction of the COP may lead to stabilization of the situation, and to reduce the cost of dollar.The domestic economy will develop rapidly, and the solution of all the problems the state is found in the answer to the question about what the bank's key rate for the country.
