If you want to understand what refinancing rate to begin with is to deal with the essence of the concept of refinancing.In Russian legislation stipulates that this term is understood the Russian Central Bank loans to other financial institutions.The central bank itself is a very important financial institution, focusing in practically all the financial resources of the state, while "willingly" by lending it to all who wish, if by that is meant a more or less large credit institutions of a commercial nature.Since the disposal of the Central Bank are billions, it does not issue loans of a few thousand.Speaking of "willing", we mean that he does not give money to credit institutions for a reason, usually it is done on terms of repayment and retribution, the percentage is large enough.The interest rate in this case is the same for all credit institutions, it is meant by the term refinancing rate.What is it they want to know many who somehow affects the topic of credit.It is important to understand that the Central Bank is appointed each year it is a particular value of this rate.The value of this parameter varies in a fairly wide range and depends on the percentage of weight factors.
What is the rate of refinancing, and what is its significance
accepted that the refinancing rate is an important indicator of the monetary policy of the Central Bank.With this tool, the bank changed the level of profitability of the securities, while there is a stabilization of prices and regulated inflationary growth.Regulation of inflation is carried out on a very specific scenario.We have already seen what the CBR refinancing rate, now let's look at the sequence of actions that occur in this scenario.
first made by the Central Bank rate cut.After that, commercial banks an opportunity to take a more "cheap" credit, which affects their own credit rate, which also becomes lower.It turns out that now the legal and natural persons can take out loans in commercial banks is much cheaper.Because of the "freewheeling" to the citizens of euphoria, they start to gain more and more loans, buying everything they need only.The result is an increase in demand for goods in the shops, which is why the prices are starting to rise, while significantly accelerating inflation.It all becomes a cause of increasing the Central Bank refinancing rate.Credits begin to rise in price, which affects the citizens, because now they take them less willing, so buy much less.Here we have in mind are not luxury items, and consumer goods.This reduces the rate of inflation.At this time, there has been stagnation in the securities markets, since buying and selling them becomes unprofitable, because the money nowhere to take, and the loans are issued at high interest rates.The result of such a situation, it becomes something that the central bank is trying to somehow revive the market by lowering the refinancing rate.This movement can be called infinite, because throughout history the banks many times we have seen rise and fall of this indicator.You already know what the rate of refinancing.
Let's look at the same time, what sectors of our lives it is applied.If the interest rates on deposits of individuals more than the refinancing rate at 5%, then such income will be taxed.If the contract on the loan interest rate is not available, it is assigned equal to the refinancing rate.In other cases, the figure is very important.
We figured, what the rate of refinancing, and what is its purpose.It is clear that it is an important economic parameter that directly affect the lives of every citizen.