What's happened key rate

The concept of "key rate" was enshrined in Russian legislation in September 2013.

(hereinafter - CS) of the Bank of Russia is a basic indicator of the state monetary policy conducted by the leadership of the Central Bank of the Russian Federation. Formally corresponds to the minimum rate weekly REPO auctions and deposit auctions of the Central Bank. In fact, “currency swap” auctions are also financed by the CU (information of the Central Bank of the Russian Federation of 03/23/2018).

From March 26, 2018, the value of the COP is 7.25%. In addition to it, the Central Bank of the Russian Federation sets other rates for operations directed to:

• for providing liquidity, that is, for issuing loans to private banks (which then convert them into loans for their customers);
• absorption of liquidity, that is, the placement of private banks on the accounts of the Central Bank of the Russian Federation.

REPO auctions and “currency swap” conducted on a “net” CU are examples of operations to provide liquidity, deposit auctions are absorption operations. money supply.

Rates on other indicated transactions, depending on their type, may differ markedly from the COP. For example, the rate on overnight overnight loans from March 26, 2018 is 8.25%, and the rate on loans secured by non-marketable assets is 9%.

Along with the term "key rate", the concept of "refinancing rate" (hereinafter - SR) is widely used. What does it mean? How is the key rate different from the refinancing rate?

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What is the refinancing rate and how does it differ from the key

Until 2013, the term "refinancing rate" (used since 1992) denoted the rate at which the Central Bank of the Russian Federation issued cash private financial institutions. At the same time, the differentiation of banking operations into the above-mentioned categories - for the provision and absorption of liquidity - was carried out according to other principles.

For example, the SR value could correspond to overnight transactions (which today have a higher rate compared to the CU), while the "currency swap" could be carried out at a rate lower than the SR (today - the CU).

Thus, the main fundamental difference between the refinancing rate and the key rate (if we compare them functional purpose during the periods in which they had legal significance) - in the difference between the linking of the rate to certain banking operations.

Since 2013, after the introduction of the CU, the SR has been used only as a reference indicator in the publications of the Central Bank of the Russian Federation. Since 2016, the SR has been reduced to the value of the CV (instruction of the Central Bank of the Russian Federation of December 11, 2015 No. 3894-U). The CS has become the main reference point in financial policy states. A different differentiation of banking operations was established.

However, the concept of "refinancing rate" has not disappeared from circulation. It is in this case as a synonym for the key rate - used, in particular, to calculate compensation for various debts: tax, appearing in civil legal relations. The subsequent replacement of the term "refinancing rate" with the concept of "key rate" for use for these purposes is not ruled out.

Until September 2013, the CBR issued cash (and absorbed liquidity) at the refinancing rate. After that, the key rate was introduced, to which the SR was equated since 2016 (and before that, since September 2013, it was used as a reference indicator). They were tied to both rates at different times separate operations to provide or absorb liquidity of the Central Bank of the Russian Federation. The main difference between the refinancing rate and the key rate is the linking of the rate to certain banking operations.

On January 1, 2016, the Bank of Russia equated the refinancing rate to the key rate. However, many people still do not understand the differences between the key rate and the refinancing rate, as well as in what cases to apply one or another rate. We propose to understand.

Important in the article:

• where the key rate and the refinancing rate are applied;
• differences between the key rate and the refinancing rate.

key rate

The key rate is currently put into effect by the Central Bank Russian Federation(Bank of Russia) on the basis of the document “Information of the Bank of Russia dated September 13, 2013 “On the system of interest rate instruments of the monetary policy of the Bank of Russia” adopted by it.

The key rate of the central bank appeared as part of the transition to inflation targeting regime 1 in order to implement a set of measures to improve the system of monetary policy instruments. It is determined by unifying interest rates on liquidity provision and absorption operations on an auction basis for a period of 1 week.

At the time of this decision, the Bank of Russia declared the key monetary policy rate to be 5.50 percent per annum.

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The width of the interest corridor, symmetrical with respect to the key rate, is equal to two percentage points. This width is considered by the Central Bank as optimal for limiting the volatility of interest rates. money market while maintaining incentives for the redistribution of funds in the interbank market.

That is, at the time the decision was made to introduce the key rate (September 13, 2013), the lower limit of rates on the Bank of Russia's standing operations for absorption and provision of liquidity for a period of 1 day was 4.5 percent per annum, the upper limit was 6.5 percent.

In less than two years, the key rate has changed eight times, reaching 17 percent per annum (December 16, 2014). Since June 14, 2016, the key rate has been 10.5 percent per annum.

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What does the key rate affect?

Using the key rate, the Bank of Russia regulates financial and credit relations, including subsequent interest rates on loans, deposits, settlements in relations with the banking sector of the economy, in the public sector, etc. A change in the established size of the key rate directly affects further monetary relations in the commercial sphere, as well as inflationary processes in the state.

What does an increase in the key rate lead to:

• limiting inflation and devaluation national currency in conditions of market instability;
• support of financial stability in the state;
• reducing the number of financial speculations;
• raising rates on deposits in commercial banks;
• an increase in lending rates in commercial banks, which reduces the level of demand for lending;
• slowdown economic growth(inability to take "cheap" loans;
• decline in production;
• reduction in the number of jobs.

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Goals and consequences of the key rate cut:

• moving away from inflation targeting;
• decrease in the level of interest rates for lending in banks;
• increase in deposits and cash on bank deposits;
• an increase in the money supply in the hands of the population;
• increase in lending;
• increasing the pace and volume of production.
• economic growth, increase in gross domestic product (GDP);
• increase in inflation rates, weakening of the national currency.

As we can see, the key rate today plays a significant role in the monetary policy of the state, while both processes of changing the key rate have their pluses and minuses. A decrease or increase in the key rate mainly depends on the situation in the country's economy and on the reaction of state authorities and the Bank of Russia to these economic processes.

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Refinancing rate

The refinancing rate is understood as the interest rate when the Central Bank provides loans to commercial banks. The refinancing rate was introduced on January 1, 1992 on the basis of the Telegram of the Bank of Russia dated December 29, 1991 No. 216-91 “On the interest rate on loans of the Bank of Russia provided to commercial banks”.

Until June 1, 2015, the interest rate for the use of other people's funds was also calculated at the refinancing rate in accordance with Article 395 of the Civil Code of the Russian Federation. From June 1, 2015, the amount of interest is determined by the average rates of bank interest on deposits existing at the place of residence or location of the creditor individuals, published by the Bank of Russia and taking place in the relevant periods. At present, for example, in the Central Federal District, the average rate is 8.24 percent per annum, in the North Caucasus federal district- 7.4 percent.

The refinancing rate is the rate at which it is also used for tax purposes to calculate penalties and fines.

By the above decision of the Bank of Russia (“Information of the Bank of Russia dated September 13, 2013 “On the system of interest-bearing instruments of the monetary policy of the Bank of Russia”), the Central Bank notified that by January 1, 2016, the Bank of Russia will adjust the refinancing rate to the level of the key rate; however, until the specified date, the refinancing rate will be of secondary importance.

Thus, at present, the refinancing rate fully coincides with the key rate - from June 14, 2016 it is 10.5 percent per annum.

Differences between the key rate and the refinancing rate

In fact, the main difference between the key rate and the refinancing rate is that the refinancing rate is applied as annual interest provision of loans by the Central Bank of Russia to commercial banks, while the key rate is short-term, the interest on loans at the key rate is determined for a period of not more than a week (for operations providing and absorbing liquidity on an auction basis for a period of 1 week).

The refinancing rate has now been brought into line with the key rate, the difference in these concepts has de facto leveled. That is, there are no differences between the key rate and the refinancing rate now. Moreover, in accordance with Decree of the Government of the Russian Federation of December 8, 2015 No. 1340 “On the application of the key rate of the Bank of Russia from January 1, 2016”, the Government of the Russian Federation decided that the relations regulated by acts The governments of the Russian Federation that use the refinancing rate of the Bank of Russia, from January 1, 2016, the key rate of the Bank of Russia will be applied instead of the specified rate, unless otherwise provided by federal law.

However, the concept of the refinancing rate has not lost its legal meaning. The mentioned Decree of the Government of Russia determined the application of the key rate instead of the refinancing rate only in relation to the by-laws adopted by it. From which it follows that the refinancing rate specified in the regulatory legal acts of the legislative authorities is subject to further application, albeit formally, the name is the same size as the key rate.

So, the refinancing rate still applies:

• in tax legal relations;
• when calculating penalties (clause 4, article 75 tax code Russian Federation), accrual of interest payable to a taxpaying organization in the event of an unlawful decision by a tax authority to suspend operations on its accounts (clause 9.2, article 76 of the Tax Code of the Russian Federation),
• recovery of a fine from the bank if the latter fails to fulfill the order of the tax authority to transfer the tax, advance payment, fee, penalties, fine (clause 1 of article 135 of the Tax Code of the Russian Federation),
• as well as in other cases of determining the measure of responsibility in the implementation of tax legal relations.

The current refinancing rate is also used when determining the amount of interest on the amount of debt for the period of use of funds under monetary obligation, the parties to which are commercial organizations (clause 1, article 317.1 of the Civil Code of the Russian Federation).

Thus, we can conclude that at present the actual differences between the refinancing rate and the key rate for implementation commercial organizations entrepreneurial activity no - both rates are the same. In the future, when changing (cancelling) given condition, it will be necessary to re-orientate in which areas the key rate is applied, and in which the refinancing rate.

In this case, the following principle can serve as a guideline - the refinancing rate in 2018, among other things, is set to determine the amount of liability (civil law, tax), in most cases as the lowest possible percentage, penalty, fine or penalty.

The main purpose of the key rate is relations regulated by the state and the Bank of Russia in the field of financing, lending, and controlling inflation processes.

1 Inflation targeting is a set of monetary measures taken government bodies authorities to control inflation in the country. The main tool for conducting monetary policy to maintain the planned level of inflation is the manipulation of the discount rate (refinancing rate).

The Government has several financial instruments to influence banking policy. In order to influence the country's economy, it is necessary to take into account the factors that help influence the level of interest rates on credit and deposit interest that develop in the country as a result of a market economy.

central bank The Russian Federation sets the interest rate at which it intends to lend to commercial banking structures. It is she who is called key rate.

Let's consider what it matters, according to what principles it is established, what it affects and how it differs from similar concepts, such as the refinancing rate.

Key rate - credit and deposit instrument

The Central Bank of the Russian Federation approves the key interest rate in two directions:

• minimum percentage on which he can lend commercial banks up to 7 days;
• the maximum interest rate at which the Central Bank can borrow deposit funds provided by banks.

REFERENCE! The rate is called the key rate because of its leading role in setting the interest that banks will assign to any credit operations. It directly affects banking funds and, consequently, the rate of inflation in the country.

It can be simplified to define key rate as a "wholesale cost", at which banks, as it were, acquire loans from the Central Bank, and then distribute them at a "retail cost". Naturally, the lower the price in the "wholesale purchase", the more accessible it will be "retail", that is, banks can set a lower loan interest.

History of the Russian key rate

Until September 2013, such a thing as a “key rate” in the Russian economic system did not apply.

1. For the first time, the value of the key rate in the Russian Federation was established in 2013 by a decision of September 13, it was 5.5% per year.
2. Almost a year later (03/03/2014) it was raised to 7% per annum. The reason for such a sharp increase was the too rapid annual increase in prices for consumers (more than 6%, while the planned figure did not exceed 4%). In order to bring the situation closer to the planned one by the end of 2014, an increase in the key rate was undertaken.
3. The measure taken did not produce the expected effect, inflationary risk remained high. Therefore, the Central Bank of the Russian Federation went for a further increase in the rate - 04/28/2014. it amounted to 7.5% per annum.
4. After 3 months, an increase to 8% was again required.
5. The progression of inflation forced the level to rise again immediately by 1.5% - this happened on November 05, 2014.
6. In December of the outgoing 2014, I had to take emergency drastic measures and first raise the rate by 1%, and then increase it by several points at once - up to 17%. On the exchange, these days received the symbolic names "Black Monday" and "Black Tuesday".
7. When the inflationary situation somewhat stabilized, it became possible to reduce the rate, which was done in February 2015. – it became 15%.
8. From March 16, 2015 there was another decrease - up to 14%.
9. In April, the key rate lost another 1.5%.
10. On June 16, 2015, the rate was 11.5% per year, and already in August it fell to 11%. The Board of Directors of the Central Bank decided to keep it at this level as long as the economic situation allows.
11. The established rate lasted for almost a year - until June 13, 2016, when it was reduced by another 0.5%.
12. The rate was reduced by another 0.5% in June 2016.
13. From September 2016, it was decided to reduce the rate to 10% per year.
14. On March 27, 2017, the rate dropped again to 9.75%.
15. Another decrease of 0.5% from May 2, 2017.
16. A month and a half later, another decrease of 0.5% occurred again.
17. Since September 18, by decision of the Bank of Russia, the rate has decreased to 8.50%.
18. Since October 30, again a decrease of 0.25 points.
19. The sixth reduction of the key rate in 2017 to the level of 7.75% since December 18.
20. In February 2018, the rate fell again by 0.25 points.
21. In March, the rate continued to fall by another 0.25%.
22. The first rate increase of 0.25 points since 2014 happened in August 2018.
23. In December 2018, there was another rate increase of 0.25 points.

The same data, but now in a visual pivot table:

Period	Key rate (%)	Regulatory document
12/17/2018 — today	7,75	Information from the Bank of Russia dated December 14, 2018
17.09.2018 — 16.12.2018	7,50	Information from the Bank of Russia dated September 14, 2018
26.03.2018 — 16.09.2018	7,25	Information from the Bank of Russia dated March 23, 2018
12.02.2018 — 25.03.2018	7,50	Information from the Bank of Russia dated February 9, 2018
18.12.2017 — 11.02.2018	7,75	Information from the Bank of Russia dated December 15, 2017
30.10.2017 — 17.12.2017	8,25	Information from the Bank of Russia dated October 27, 2017
18.09.2017 — 29.10.2017	8,50	Information from the Bank of Russia dated September 15, 2017
19.06.2017 — 17.09.2017	9,00	Information from the Bank of Russia dated June 16, 2017
02.05.2017 — 18.06.2017	9,25	Information from the Bank of Russia dated April 28, 2017
27.03.2017 — 01.05.2017	9,75	Information from the Bank of Russia dated March 24, 2017
19.09.2016 — 26.03.2017	10,00	Information from the Bank of Russia dated September 16, 2016
14.06.2016 — 18.09.2016	10,50	Information from the Bank of Russia dated 06/10/2016
03.08.2015 — 13.06.2016	11,00	Information from the Bank of Russia dated July 31, 2015
16.06.2015 — 02.08.2015	11,50	Information of the Bank of Russia dated 06/15/2015
05.05.2015 — 15.06.2015	12,50	Information from the Bank of Russia dated April 30, 2015
16.03.2015 — 04.05.2015	14,00	Information from the Bank of Russia dated March 13, 2015
02.02.2015 — 15.03.2015	15,00	Information from the Bank of Russia dated January 30, 2015
16.12.2014 — 01.02.2015	17,00	Information from the Bank of Russia dated 12/16/2014
12.12.2014 — 15.12.2014	10,50	Information from the Bank of Russia dated 11.12.2014
05.11.2014 — 11.12.2014	9,50	Information from the Bank of Russia dated October 31, 2014
28.07.2014 — 04.11.2014	8,00	Information of the Bank of Russia dated 25.07.2014
28.04.2014 — 27.07.2014	7,50	Information from the Bank of Russia dated April 25, 2014
03.03.2014 — 27.04.2014	7,00	Information of the Bank of Russia dated 03.03.2014
13.09.2013 — 02.03.2014	5,50	Information from the Bank of Russia dated September 13, 2013

NOTE! Based on the level of fluctuations in the key rate, it is easy to make a choice about the degree of stability of the national currency.

The lower the better

The decrease in the key rate reflects the "health" of the economy in the country.

At reduced rates, commercial banks have the opportunity to take more loans from the Central Bank, which means that they can lend more widely and affordably to small and medium-sized businesses.

Businessmen produce more goods and services that the consumer willingly buys, because the supply is large enough, which means that the prices for them are acceptable. This heals the economy and positively affects the well-being of citizens in general.

Key rate increase- it's like a rise in temperature in a patient, speaks of some kind of economic crisis. Loans are getting too expensive. And this means that there is nowhere to take funds for business development. There is a "freeze" of the economy.

Why is the Government raising the key rate?

If raising interest rates is bad for the economy, why bother doing it at all?

Raising the key rate is a forced temporary measure designed to contain inflationary processes, primarily the fall of the national currency.

A high key rate makes unprofitable foreign exchange speculation by commercial banks, which thrive at a reduced credit interest. The temptation to take out a loan at a low rate and buy foreign currency with these funds is too great, and at a low loan rate, all commercial banks begin to abuse this operation. And this leads to the fall of the ruble.

Therefore, the Government operates with the level of the key rate in order to balance this process at an acceptable economic level.

Do not confuse the key rate and the refinancing rate

This is another economic instrument, also aimed at lending to commercial banks, but with a slightly different original meaning. Unlike the key one, for a long time it was of a reference nature and could not serve as an indicator of the state's credit policy.

It has been used since 1992, having changed several official names:

• "single interest rate" - telegram of the Central Bank of Russia dated December 29, 1991 No. 216-91;
• "discount rate for centralized credit resources" - telegram of the Bank of Russia dated April 10, 1992 No. 84-92;
• "refinancing rate of commercial banks" - telegram of the Bank of Russia dated May 22, 1992 No. 01-156.

Refinancing rate- the percentage that the Central Bank uses when providing loans to others banking structures. It was not tied to the actual rates for certain banking operations. Application, unlike the key one, was limited to the following areas:

• accrual of interest on deposits in rubles without income tax;
• calculations tax penalties for delay;
• the basis tax base for tax on income from interest savings when using borrowed money;
• to determine the interest on the loan, if it was not specified in the agreement.

IMPORTANT INFORMATION! Since January 1, 2016, the refinancing rate has been brought into line with the key rate, and as of today it is also equal to 7.75% per annum.

History of changes in the refinancing rate

Period	Refinancing rate (%)	Regulatory document
14.09.2012 — 31.12.2015	8,25	Instruction of the Bank of Russia dated September 13, 2012 N 2873-u
26.12.2011 — 13.09.2012	8	Instruction of the Bank of Russia dated December 23, 2011 N 2758-U
03.05.2011 — 25.12.2011	8,25	Instruction of the Bank of Russia dated April 29, 2011 N 2618-U
28.02.2011 — 02.05.2011	8	Instruction of the Bank of Russia dated February 25, 2011 N 2583-U
01.06.2010 — 27.02.2011	7,75	Instruction of the Bank of Russia dated May 31, 2010 N 2450-U
30.04.2010 — 31.05.2010	8	Instruction of the Bank of Russia dated April 29, 2010 N 2439-U
29.03.2010 — 29.04.2010	8,25	Instruction of the Bank of Russia dated March 26, 2010 N 2415-U
24.02.2010 — 28.03.2010	8,5	Instruction of the Bank of Russia dated February 19, 2010 N 2399-U
28.12.2009 — 23.02.2010	8,75	Instruction of the Bank of Russia dated December 25, 2009 N 2369-U
25.11.2009 — 27.12.2009	9	Instruction of the Bank of Russia dated November 24, 2009 N 2336-U
30.10.2009 — 24.11.2009	9,5	Instruction of the Bank of Russia dated October 29, 2009 N 2313-U
30.09.2009 — 29.10.2009	10	Instruction of the Bank of Russia dated September 29, 2009 N 2299-U
15.09.2009 — 29.09.2009	10,5	Instruction of the Bank of Russia dated September 14, 2009 N 2287-U
10.08.2009 — 14.09.2009	10,75	Instruction of the Bank of Russia dated 07.08.2009 N 2270-U
13.07.2009 — 09.08.2009	11	Instruction of the Bank of Russia dated July 10, 2009 N 2259-U
05.06.2009 — 12.07.2009	11,5	Instruction of the Bank of Russia dated 04.06.2009 N 2247-U
14.05.2009 — 04.06.2009	12	Instruction of the Bank of Russia dated May 13, 2009 N 2230-U
24.04.2009 — 13.05.2009	12,5	Instruction of the Bank of Russia dated April 23, 2009 N 2222-U
01.12.2008 — 23.04.2009	13	Instruction of the Bank of Russia dated November 28, 2008 N 2135-U
12.11.2008 — 30.11.2008	12	Instruction of the Bank of Russia dated November 11, 2008 N 2123-U
14.07.2008 — 11.11.2008	11	Instruction of the Bank of Russia dated July 11, 2008 N 2037-U
10.06.2008 — 13.07.2008	10,75	Instruction of the Bank of Russia dated 09.06.2008 N 2022-U
29.04.2008 — 09.06.2008	10,5	Instruction of the Bank of Russia dated April 28, 2008 N 1997-U
04.02.2008 — 28.04.2008	10,25	Instruction of the Bank of Russia dated February 1, 2008 N 1975-U
19.06.2007 — 03.02.2008	10	Telegram of the Bank of Russia dated June 18, 2007 N 1839-U
29.01.2007 — 18.06.2007	10,5	Telegram of the Bank of Russia dated January 26, 2007 N 1788-U
23.10.2006 — 28.01.2007	11	Telegram of the Bank of Russia dated October 20, 2006 N 1734-U
26.06.2006 — 22.10.2006	11,5	Telegram of the Bank of Russia dated June 23, 2006 N 1696-U
26.12.2005 — 25.06.2006	12	Telegram of the Bank of Russia dated December 23, 2005 N 1643-U
15.06.2004 — 25.12.2005	13	Telegram of the Bank of Russia dated June 11, 2004 N 1443-U
15.01.2004 — 14.06.2004	14	Telegram of the Bank of Russia dated January 14, 2004 N 1372-U
21.06.2003 — 14.01.2004	16	Telegram of the Bank of Russia dated June 20, 2003 N 1296-U
17.02.2003 — 20.06.2003	18	Telegram of the Bank of Russia dated February 14, 2003 N 1250-U
07.08.2002 — 16.02.2003	21	Telegram of the Bank of Russia dated 06.08.2002 N 1185-U
09.04.2002 — 06.08.2002	23	Telegram of the Bank of Russia dated April 8, 2002 N 1133-U
04.11.2000 — 08.04.2002	25	Telegram of the Bank of Russia dated November 3, 2000 N 855-U
10.07.2000 — 03.11.2000	28	Telegram of the Bank of Russia dated July 7, 2000 N 818-U
21.03.2000 — 09.07.2000	33	Telegram of the Bank of Russia dated March 20, 2000 N 757-U
07.03.2000 — 20.03.2000	38	Telegram of the Bank of Russia dated March 6, 2000 N 753-U
24.01.2000 — 06.03.2000	45	Telegram of the Bank of Russia dated January 21, 2000 N 734-U
10.06.1999 — 23.01.2000	55	Telegram of the Bank of Russia dated 09.06.99 N 574-U
24.07.1998 — 09.06.1999	60	Telegram of the Bank of Russia dated July 24, 1998 N 298-U
29.06.1998 — 23.07.1998	80	Telegram of the Bank of Russia dated June 26, 1998 N 268-U
05.06.1998 — 28.06.1998	60	Telegram of the Bank of Russia dated 04.06.98 N 252-U
27.05.1998 — 04.06.1998	150	Telegram of the Bank of Russia dated May 27, 1998 N 241-U
19.05.1998 — 26.05.1998	50	Telegram of the Bank of Russia dated May 18, 1998 N 234-U
16.03.1998 — 18.05.1998	30	Telegram of the Bank of Russia dated March 13, 1998 N 185-U
02.03.1998 — 15.03.1998	36	Telegram of the Bank of Russia dated February 27, 1998 N 181-U
17.02.1998 — 01.03.1998	39	Telegram of the Bank of Russia dated February 16, 1998 N 170-U
02.02.1998 — 16.02.1998	42	Telegram of the Bank of Russia dated 30.01.98 N 154-U
11.11.1997 — 01.02.1998	28	Telegram of the Bank of Russia dated 10.11.97 N 13-U
06.10.1997 — 10.11.1997	21	Telegram of the Bank of Russia dated 01.10.97 N 83-97
16.06.1997 — 05.10.1997	24	Telegram of the Bank of Russia dated 13.06.97 N 55-97
28.04.1997 — 15.06.1997	36	Telegram of the Bank of Russia dated April 24, 1997 N 38-97
10.02.1997 — 27.04.1997	42	Telegram of the Bank of Russia dated 07.02.97 N 9-97
02.12.1996 — 09.02.1997	48	Telegram of the Bank of Russia dated November 29, 1996 N 142-96
21.10.1996 — 01.12.1996	60	Telegram of the Bank of Russia dated 10/18/96 N 129-96
19.08.1996 — 20.10.1996	80	Telegram of the Bank of Russia dated 16.08.96 N 109-96
24.07.1996 — 18.08.1996	110	Telegram of the Bank of Russia dated July 23, 1996 N 107-96
10.02.1996 — 23.07.1996	120	Telegram of the Bank of Russia dated 09.02.96 N 18-96
01.12.1995 — 09.02.1996	160	Telegram of the Bank of Russia dated November 29, 1995 N 131-95
24.10.1995 — 30.11.1995	170	Telegram of the Bank of Russia dated October 23, 1995 N 111-95
19.06.1995 — 23.10.1995	180	Telegram of the Bank of Russia dated June 16, 1995 N 75-95
16.05.1995 — 18.06.1995	195	Telegram of the Bank of Russia dated May 15, 1995 N 64-95
06.01.1995 — 15.05.1995	200	Telegram of the Bank of Russia dated 05.01.95 N 3-95
17.11.1994 — 05.01.1995	180	Telegram of the Bank of Russia dated November 16, 1994 N 199-94
12.10.1994 — 16.11.1994	170	Telegram of the Bank of Russia dated 11.10.94 N 192-94
23.08.1994 — 11.10.1994	130	Telegram of the Bank of Russia dated 22.08.94 N 165-94
01.08.1994 — 22.08.1994	150	Telegram of the Bank of Russia dated July 29, 1994 N 156-94
30.06.1994 — 31.07.1994	155	Telegram of the Bank of Russia dated June 29, 1994 N 144-94
22.06.1994 — 29.06.1994	170	Telegram of the Bank of Russia dated June 21, 1994 N 137-94
02.06.1994 — 21.06.1994	185	Telegram of the Bank of Russia dated 01.06.94 N 128-94
17.05.1994 — 01.06.1994	200	Telegram of the Bank of Russia dated May 16, 1994 N 121-94
29.04.1994 — 16.05.1994	205	Telegram of the Bank of Russia dated April 28, 1994 N 115-94
15.10.1993 — 28.04.1994	210	Telegram of the Bank of Russia dated 14.10.93 N 213-93
23.09.1993 — 14.10.1993	180	Telegram of the Bank of Russia dated September 22, 1993 N 200-93
15.07.1993 — 22.09.1993	170	Telegram of the Bank of Russia dated July 14, 1993 N 123-93
29.06.1993 — 14.07.1993	140	Telegram of the Bank of Russia dated June 28, 1993 N 111-93
22.06.1993 — 28.06.1993	120	Telegram of the Bank of Russia dated June 21, 1993 N 106-93
02.06.1993 — 21.06.1993	110	Telegram of the Bank of Russia dated 01.06.93 N 91-93
30.03.1993 — 01.06.1993	100	Telegram of the Bank of Russia dated March 29, 1993 N 52-93
23.05.1992 — 29.03.1993	80	Telegram of the Bank of Russia dated May 22, 1992 N 01-156
10.04.1992 — 22.05.1992	50	Telegram of the Bank of Russia dated April 10, 1992 N 84-92
01.01.1992 — 09.04.1992	20	Telegram of the Bank of Russia dated December 29, 1991 N 216-91

By the way, our special

Key rate in other countries

In countries with stable advanced economies the key rate is very small or even zero. For example, in Norway its value is 1.25%, in Canada it is 1%, it is only 0.5% in the UK, a quarter of a percent in the USA. One tenth of a percent is the key rate in Japan, and EU banks are credited at one hundredth of a percent. In Sweden and Switzerland, this percentage is 0.

There is something to strive for, right?

Base discount rates and part-time levers of control financial sphere— key rate and refinancing rate.

The differences between the rates are imperceptible in the opinion of the average layman, and they are not included in the circle of his informational interests.

However, everything in our life depends on them - prices, wages, inflation, standard of living.

The refinancing rate is the interest on long-term lending by the Central Bank to commercial banks; acted as the main account - until September 2013.

After that, this function was transferred to the key rate, leaving it only to participate in the calculation of fines and penalties.

The key rate is the annual interest on weekly bank loans at the Central Bank; since 2013, it has been the main percentage indicator that regulates the country's economy.

To date, these rates are equal.

Key rate and refinancing rate - differences and similarities

In domestic banking terminology, there are two concepts that characterize the cost of liquidity provided by the Central Bank: the refinancing rate and the key interest rate. Despite the fact that these concepts are close to each other in meaning, their meanings are not identical and have a number of fundamental differences. So, let's see what exactly their similarities are, and what is their difference.

The Law "On the Central Bank of the Russian Federation (Bank of Russia)" No. 86-FZ defines the main instruments of the country's monetary policy, including the setting of interest rates on the operations of the Central Bank of the Russian Federation, and the refinancing (crediting) of banks, and the implementation of operations on open market, and a number of others.

At a meeting of the Board of Directors of the Bank of Russia, the official interest rate for providing resources to credit institutions is set, on the basis of which the scale of interest rates for Central Bank operations is already being formed. Based on the orientation of monetary policy in the use of one or another of its instruments, the main bank interest rate may have a different name: refinancing rate, discount rate, key rate.

Definition and application

For the first time, as an instrument for regulating the policy of the Central Bank, the refinancing rate was established by the Telegram of the Central Bank of December 29, 1991 No. 216-91 and was put into effect on January 1, 1992. She determined the cost of loans from the Bank of Russia for all commercial banks in the country.

Since then, the refinancing rate began to reflect the level of payment for credit resources provided by the Central Bank of the Russian Federation to other banks, in other words, to characterize the lending operations of the Central Bank or refinancing operations.

Refinancing banking sector can be carried out through the provision of intraday loans, overnight loans, pawn loans, as well as loans secured by gold or non-marketable assets of the Central Bank.

Since 2003, after the publication of the CBR Telegram No. 1296-U, the refinancing rate began to determine the upper limit of interest rates for active operations(liquidity provision operations) of the Central Bank in the money market, since rates on overnight loans (“overnight” loans) were brought to its level.

Thus, the refinancing rate is an annual percentage indicator that characterizes the payment for credit resources provided by the Central Bank (refinancing). Determining one or another of its values, the Central Bank influenced the level of interest rates on interbank transactions, as well as on bank deposits and loans.

However, in addition to the main function economic regulation, the refinancing rate also performs additional functions. In particular, it is used in calculations of taxes and fees, is used under the terms of contracts to calculate penalties, to calculate penalties and forfeits on taxes, fines, court orders and other payments.

Until September 13, 2013, the refinancing rate was of decisive importance for designating the vector economic development countries. However, with the introduction in September 2013 by the Board of Directors of the Bank of Russia of the key interest rate (Information of the Bank of Russia dated September 13, 2013), the discount rate assumed secondary importance, performing only its additional functions (for example, fiscal).

Fiscal meaning of the refinancing rate

The Tax Code contains numerous references to the use of the Central Bank's refinancing rate in calculations. Those. in accordance with the provisions of the Tax Code, it is used to calculate taxes payable, as well as fines and penalties on them. This shows its fiscal meaning.

Most often, the refinancing rate is used to determine:

1. taxable base on income received in the form of material gain from savings on interest on loans (Article 212 of the Tax Code of the Russian Federation).
2. taxable personal income tax By bank deposits(Article 214.2 of the Tax Code of the Russian Federation, clause 27 of Article 217 of the Tax Code of the Russian Federation);
3. income and reasonable expenses for the purpose of calculating corporate income tax. In particular, for calculating interest expenses on debt obligations and the range of their allowable values ​​(Article 269 of the Tax Code of the Russian Federation). However, the changes made to Art. 269 ​​of the Tax Code of the Russian Federation by the Federal Law of March 8, 2015, established in some cases the application for calculating the interval of the key rate of the Bank of Russia;
4. penalties for late payment of taxes (parts 1 and 2 of the Tax Code of the Russian Federation).

Key rate of bank interest

The key rate is the interest rate for the provision and withdrawal of liquidity by the Central Bank on an auction basis for up to seven days.

It was put into effect on September 13, 2013 in order to improve the methods of regulating the monetary policy of the Central Bank of the Russian Federation, and has since been used as its main instrument (Central Bank Information "On the system of interest rate instruments of monetary policy" dated September 13, 2013 ).

The mechanism for using the key rate implies the influence of the Bank of Russia on short-term transactions (from 1 to 7 days). According to the Information of the Central Bank of the Russian Federation dated September 13, 2013, at the key rate, the Central Bank provides banks with liquidity based on REPO auctions for a period of one week - purchase and sale transactions valuable papers.

Together with the definition of the key rate, the Bank of Russia also introduces the concept of an interest rate corridor, the width of which is two percentage points. The upper and lower limits of the interest corridor are operations at fixed interest rates to provide and withdraw liquidity, respectively.

The key rate determines the middle of the corridor. In addition, floating borrowing rates are also linked to the key rate.

By raising or lowering the key rate, the Central Bank influences the level of money market interest rates, and, consequently, the level of bank liquidity, the volume of money supply in the economy, the inflation rate and economic growth rates.

Differences

Thus, both the refinancing rate and the key interest rate are the main monetary policy instruments of the Bank of Russia, applied in different periods of time, and in a certain way describing the cost of liquidity provided to banks.

Distinctive features These two concepts are presented below:

According to the Information of the Central Bank "On the system of interest rate instruments of the monetary policy of the Bank of Russia" dated September 13, 2013 and published by the Bank of Russia "The main directions of the unified state monetary policy for 2015 and the period of 2016 and 2017" the key rate is decisive in shaping the policy of the Central Bank. At the same time, the refinancing rate is only of secondary importance, performing its additional functions.

Source: "kibanki.com"

Comparison of two monetary and credit policy instruments

Leverage stakes financial activities 90% of citizens of any country in the world are not included in the information circle, but they directly affect prices, salaries, and the general standard of living in the country. By and large, it is hard to imagine that in the life of an ordinary city dweller does not depend on these rates.

At first glance, the refinancing rate and the key rate are almost identical, but for a competent economist the differences are huge, so this article will be devoted to the analysis of the subtleties and nuances, and will consist of definitions of each concept and a point-by-point analysis of the discrepancies.

What it is

One way or another, refinancing, as covering old loans with new loans, is as old as the money itself, and was known as far back as ancient Babylon. We are interested in the process in which the Central Bank or a similar body lends to other banks to meet their needs, mainly loans.

In practice, it looks like this. To give a loan, a bank must have financial resource(usually deposits are considered under it), however, the deposit mass is changeable and can fluctuate greatly. This leads to the inability to service loans, issue new ones, and sometimes return deposits, that is, to bankruptcies.

Therefore, banks resort to refinancing, take a loan from the central bank, and add the amount of the loan to the amount of the deposit portfolio. The annual interest on this loan is just called the refinancing rate. It, like any interest on a loan, is the main parameter of the attractiveness of this type of loans.

But it is also included in the formulas for calculating various kinds of interest, penalties and fines. And is important indicator for calculations in models of theoretical economics. Refinancing rate - standard world practice in the banking environment.

The key rate is the minimum percentage at which the Central Bank of the Russian Federation, on the basis of REPO auctions, provides loans to banks for a period of 1 week (7 days), and also this maximum bet deposits in the Central Bank of the Russian Federation for commercial banks.

It was put into effect on September 13, 2013. This information is set out in the document "On the system of interest rate instruments of monetary policy" dated September 13, 2013.

Also, along with the introduction of the key rate, the concept of an interest rate corridor was introduced into the legal field, which is a step of two percentage points from the key rate in both directions. Floating borrowing rates are also tied to the key rate.

Thus, both rates are tools for regulating the monetary policy of the Central Bank of the Russian Federation at different times.

Main differences

Although representing almost similar concepts, and being a tool for regulating monetary and credit policy in the Russian Federation, it makes sense to distinguish between these two concepts.

In addition, in connection with Bank of Russia Directive No. 3894-U, dated December 11, 2015, “On the Bank of Russia Refinancing Rate and the Key Rate of the Bank of Russia”, effective January 1, 2016, the value of the Bank of Russia refinancing rate is equal to the value of the Bank of Russia key rate determined for the date.

And from 06/14/2016 both rates are equal to 10.5% per annum.

Below are the main differences:

• Basic meaning. If the refinancing rate showed the upper marginal rate on the operations of the Central Bank of the Russian Federation, then the key rate determines the corridor in which there are prices at which the Central Bank of the Russian Federation intervenes in financial life through the provision and withdrawal of liquidity from circulation.
• Conducted operations. If the Refinancing Rate was activated through intraday loans, pawn loans, loans under precious metals and non-marketable assets and overnight loans. Then the key rate is used at REPO auctions for a period of 7 calendar days.
• Additional features. The refinancing rate, in addition to being used in statistical and theoretical economics used in many fiscal and other similar operations, for example:
• Daily penalty, for late payment taxes and fees, as well as penalties for each day of delay in payment of wages, vacation pay, sick leave and other accruals, is 1/300 of the refinancing rate.
• The need to pay tax on deposits is defined as a rate of + 5% in rubles and a rate of + 9% in foreign currency.
• If the interest was not specified when drawing up the loan agreement, then it is equal to the refinancing rate on the day the agreements were concluded.
• The key rate determines only the regulated (Article 296 of the Tax Code of the Russian Federation) intervals of the maximum values ​​of debt obligations.

Period of application and legislative acts

1. The refinancing rate was introduced on January 1, 1992 by the CBR telegram dated December 29, 1991 No. 216-91 and ceased to be valid on September 13, 2013.
2. And the key rate is valid from September 13, 2013 to the present and was introduced by the information "On the system of interest rate instruments of monetary policy" dated September 13, 2013.

Thus, although having this moment the same value, these rates represent different economic instruments that should not be mixed.

Source: "vchemraznica.ru"

Credit rates of the Central Bank of Russia

IN Lately due to the developing world financial crisis everything becomes more people those interested in the economy, its indicators, terms and concepts. In this regard, many questions arise, among which one of the leading places is the difference between the refinancing rate and the key rate. First, let's decipher these concepts.

The key rate is an indicator that determines the amount of the Central Bank's interest on short-term weekly loans provided to banks.

Also, this value is decisive for the deposits that the Central Bank accepts from banking institutions. This indicator is the main regulator of the inflation rate and investment attractiveness.

The refinancing rate is the annual interest rate on loans borrowed by credit institutions from the Central Bank of Russia. Today, the role of this financial and economic indicator is secondary; it is used to calculate fines and penalties.

Impact of changes in the lending rate of the Central Bank of Russia

Until 2013, there was no such thing as a discount key rate in the Russian economy. Instead, the key role was played by the refinancing rate, which was first introduced in 1992. On September 13, 2013, in order to control inflation and increase investment attractiveness, the Central Bank simultaneously introduces a key rate and determines its size at 5.5%.

Until December 2014, statistics recorded an increase in this indicator, after which a gradual decrease to 11% began. The impact of the key rate on the economy is as follows. It forms the amount of bank loans that are issued to individuals and legal entities.

In addition, inflation is adjusted with its help, and the volume of resources attracted by commercial banks is determined. To reduce inflation, the Central Bank uses an increase in the key rate. The mechanism of influence can be understood as follows.

The consequence of the increase is a change towards an increase in the rate on deposits and loans, including mortgages, which are provided by banks. Naturally, purchasing power is falling, ruble pressure is decreasing, and inflation is slowing down. This is one of the options for applying an increased key rate. Another could be observed at the end of 2014.

Then the Central Bank decided to raise its value by 70% from 10.5 to 17%. This move significantly limited access to short-term lending for commercial banks.

The result was a decrease in the number and volume of speculation on foreign exchange market, which contributed to the growth of the dollar and inflation, due to the lack of borrowed ruble stock.

If the country's economy is in a state of stagnation, production and business activity decreases, and because of this, deflation begins, a decision is made to reduce the size of the rate. This reduces the cost bank loan which, in turn, stimulates lending in real sector economy.

What is the role of the refinancing rate

To date, its practical role is as follows:

• Determines the need for taxation on deposits in rubles and foreign currency, if their interest rate exceeds the refinancing rate by 5% (in the case of deposits in foreign currency - by 9%).
• Calculation of the daily penalty charged for late payment of tax dues. It is calculated as 1/300 of the refinancing rate.
• If the amount of accrued interest was not specified in the loan agreement, they are determined by the level of the refinancing rate on the date of conclusion of the agreement.
• Calculation of the amount of penalties imposed on the employer for each day of delay in payment wages, vacation, sick leave and other accruals to employees. It is also equal to 1/300 of a part.

Until 2013, she played a key role in the conduct of monetary policy. historical example her work can serve as 1998. The Central Bank of Russia used the size of the refinancing rate to correct the financial sector of the Russian economy.

Starting from May and up to the crisis that engulfed the Russian economy in August, the refinancing rate was raised several times. In this way, the Central Bank stimulated the purchase of new government securities, demonstrating high level their profitability.

However, the outbreak of the crisis showed the ineffectiveness of such actions, so it was decided to reconsider monetary policy, mitigate it and lower the rate.

The difference between the rates

Until the autumn of 2014, when there was a significant jump in the size of the key rate, the values ​​of both these indicators did not differ significantly from each other. But the collapse of oil on world markets and the subsequent fall of the Russian currency forced to raise the discount rate, significantly increasing its gap with the refinancing rate, which today is 8.8%.

This resulted in a contradictory situation. The relatively low refinancing rate made it unprofitable for borrowers to fulfill their debt service obligations.

The late payment penalty turned out to be significantly lower than the refinancing rate. That is, it has become more profitable for creditors to accumulate a penalty than to take new loan to repay current liabilities.

An increase in the refinancing rate to the level of the key rate can correct this situation. This will increase the amount of interest charged to the level of interest on loans, which should encourage borrowers to pay rather than accumulate debt.

The current policy pursued by the Central Bank suggests that at the moment the problem of growing arrears is lower than the ability to manage inflation in the country.

Source: "banki-v.ru"

Differences between the refinancing rate and the key rate

On the night of December 15-16, 2014, the Central Bank of the Russian Federation raised the key rate from 10% to 17% per annum, which caused a sharp rise in the ruble against the dollar and the euro. At the same time, it turned out that many people confuse the key rate and the refinancing rate, which has a greater impact on the economy.

Below it is written in detail how the refinancing rate differs from the key rate of the Central Bank.

The key rate, which was raised on December 16, is the rate at which the Central Bank of the Russian Federation (the main monetary organization Russia) gives banks loans for one week, and the rate at which he is ready to accept money for deposits. In 2016, it was planned that it would equalize with the refinancing rate.

The refinancing rate is the "main" rate in the Central Bank of the Russian Federation. It is on her that the calculation of penalties and fines in Russia depends. And it is at this rate that ordinary banks return the money borrowed from the Central Bank when the loan term approaches. In fact, a bank that took a loan of 100 million rubles at the beginning of the year undertakes to return the Central Bank 100 million rubles and interest at the refinancing rate in a year.

It is to her that most of the loans that people take and legal entities, because ordinary banks issue loans that are higher than the refinancing rate, because this is where they make money.

The key rate regulates the short-term relationship between the Central Bank and banks and affects how much banks will pay for money taken for a short period.

Now, with the growth of the key rate, banks have lost the opportunity to take money from the Central Bank and buy foreign currency from the population with the money received, which led to a sharp jump in the exchange rate, along with other reasons.

From all this, two conclusions follow:

1. Banks have lost the opportunity to speculate on the growth of the exchange rate.
2. Loans will rise in price, because banks, when calculating interest on a loan, are guided by the key rate.

Source: "playittodeath.ru"

What is common and what is the difference between the key rate and the refinancing rate of the Bank of Russia

I will try to explain what is the difference between the key rate and the refinancing rate of the Bank of Russia. But first, it is worth noting what they have in common. Both of these rates are the discount rates that the Central Bank of the Russian Federation has used or is using as its tools in monetary policy.

Both that, and that to a different extent (and in different conditions) reflected or reflect cost of money (or influence their cost) in economy at a certain moment. And if before the main discount rate was the refinancing rate, since September 13, 2013, the key rate of the Bank of Russia has become such.

Key rate The key rate of the Central Bank of the Russian Federation was officially announced for the first time as the main instrument of monetary policy on September 13, 2013. Then, at the Board of Directors of the Bank of Russia, a new macroeconomic concept was introduced - the “Key Rate”, and the approach to monetary policy instruments was also changed.

The key rate is the rate set by the Bank of Russia in order to have a direct or indirect impact on the level of interest rates in the country's economy, which occurs through lending by the Bank of Russia to commercial banks.

It is defined as the interest rate for operations providing and absorbing liquidity on an auction basis for a period of 1 week.

That is, this is the rate at which the Central Bank lends to commercial banks and accepts deposits from them for this period. The main task of the key rate is to influence the economy in order to achieve the planned level of inflation.

History of changes in the key rate of the Central Bank of the Russian Federation

The refinancing rate is the main (until September 13, 2013) of discount rates, a financial benchmark, an indicator that was used by the Bank of Russia to assess the current value of money in the economy. The rate determined the amount of interest on an annualized basis payable Central bank countries for loans that the Central Bank provided to credit institutions.

At the moment, it is not formally tied to the actual rates at which the Central Bank lends to commercial banks. The main task of the refinancing rate is an assessment (landmark) of the current value of money and an indicator for the purposes of accounting and taxation.

Currently, this indicator is mainly used in many areas of accounting and taxation, in particular:

• for calculating penalties for arrears in the payment of taxes and fees (clause 4, article 75 of the Tax Code of the Russian Federation);
• for calculating interest when granting a deferral or installment plan for the payment of taxes and fees (clause 4, article 64 of the Tax Code of the Russian Federation), providing tax credit(clause 5, article 65 of the Tax Code of the Russian Federation);
• for calculating interest in case of delay by the tax authorities in returning the overpaid tax or fee (clause 9, article 78 of the Tax Code of the Russian Federation);
• to calculate penalties in case of violation by the bank of the deadline for the execution of the client's payment order for the payment of taxes (fees) (clause 1, article 133 of the Tax Code of the Russian Federation);
• in some cases, the refinancing rate is used to determine the amount of material benefits received by the taxpayer for tax purposes, as well as in many other cases.

The Bank of Russia equated the refinancing rate to the key

The Board of Directors of the Central Bank of the Russian Federation decided to equate the refinancing rate (8.25%) from January 1, 2016 to the key rate of the Central Bank (11%). In the future, it is planned to change the refinancing rate only at the same time with a change in the key rate by the same value. The very value of the refinancing rate in the future will no longer be set independently.

This is precisely the very moment when these two rates concern us directly, if we are talking about our relationships with banks. Also, the current reduction of the refinancing rate to the key one means that from January 1, the amount of penalties and fines for late taxes, housing and communal services and other everyday payments will increase significantly. Since they are in the Tax, Housing and Civil Codes tied to the refinancing rate of the Central Bank.

So, if you or your enterprise suddenly has a tax debt, then now you will calculate penalties not at 8.25% per annum, but at 11%. Let's say you need to pay 40 thousand rubles of tax, but you are 40 days late with payment.

Until January 1, 2016, penalties in Pension Fund insurance premiums and tax authorities amounted to 440 rubles. Now - 513 rubles, having increased by 25-30 percent.

Let me remind you that in September 2013 the Central Bank of Russia introduced a new value - the key rate - as the main indicator of monetary policy. She announced the interest rate at which the Central Bank provides loans to commercial banks on credit for one week, and at the same time is ready to accept funds from banks for deposits.

In 2013, this rate was 5.5%. Then the Bank of Russia warned that by January 1, 2016 they would equate the refinancing rate (both then and now - 8.25%) to the key rate. And they gave the executive and legislative authorities 2.5 years to bring laws and government documents into line, where the concept of "refinancing rate" appears.

Until now, the concept of the key rate in Russian legislation not used. Therefore, based on the letter of the law, deputies will either have to amend the articles of federal laws, replacing the concept of "refinancing rate" with the "key rate".

Or, as the Central Bank has already done, raise the refinancing rate to 11%, which will not require the adoption of a separate federal law, lawyers explain (however, later this figure will have to be constantly adjusted, since the Central Bank considers changing it once a month).

Source: "zgoba.ru"

The key rate of the Central Bank of the Russian Federation and the refinancing rate

The currency crisis in Russia is a topic that interests many today. The crisis started in 2014, when developed countries imposed sanctions against the Russian Federation. This led to the fact that in the fall of 2014 Russian ruble suffered a strong weakening compared to the dollar and the euro. December 2014 - in order to stop the fall of the ruble, the Central Bank of Russia raises the key rate from 10.5% to 17 per annum.

In many, the percentage reached 20%, and in some, even exceeded. Naturally, residents cannot but worry about the question of how to pay taxes.

What is the difference

After the increase in the key tariff began, people who were not even connected with the topic of finance began to be frightened by this issue, and everyone wanted to figure out what was the matter. The general public should be made aware of these concepts. in simple words.

The refinancing rate is required to calculate penalties and fines. Also, you can not do without this concept, calculating taxes on bank deposits. At the moment, the refinancing rate is not tied to actual rates. The key tariff is the price at which any commercial Bank receives loans from the Central Bank of the country. Under the same conditions, the Central Bank agrees to accept deposits from the same banks.

It is the key - the main percentage indicator, with the help of which the country's economy is regulated. By sharply increasing the percentage, the Central Bank made attempts to save and stabilize the situation on the foreign exchange market.

Refinancing rate

What is its main essence? The role of refinancing can be described in terms of the following points:

1. Determines whether there is a need for taxation for deposits in rubles and foreign currency, if their interest value is already higher by 5%.
2. When taxes are not paid on time, it helps to calculate the daily interest, payment deferrals, etc.
3. When money contract does not describe the amount of interest, they are taken from the level of the cost of refinancing at the time of the conclusion of the contract.
4. Penalties are calculated for non-payment of salaries, sick leave, etc. to employees.
5. Due to the crisis, this tariff has been raised several times to help adjust financial situation in the country and stabilize the inflation rate.

The refinancing rate has remained unchanged since September 14, 2012. It is 8.25%, but rose to 8.8%.

Inflation

Before the crisis, which began in the fall of 2014, these indicators did not differ much from each other. But the change in the situation and inflation made it necessary to raise the annual percentage - the main credit instrument, which led to a significant gap. Now, these concepts will differ from each other.

What led to this situation? It became unprofitable for borrowers to pay on debt obligations, and it was cheaper to accumulate a penalty, because a penalty is cheaper than on-lending. Only raising and comparing the two rates could change the situation. This increase is planned to be used especially for 2016.

Thus, studying the policy pursued by the Central Bank at the moment, it can be said with certainty that the problem of growing non-payments is growing, as is the complexity of managing inflation in the country.

Will the Central Bank provide loans

Starting from 2016, the main Central Bank plans to adjust both concepts so that the CS and SR are on the same level. The natural outcome of the case was the raising of interest rates for the population by commercial banks. Thus, deposits in rubles that exceed the SR by 5% should be taxed. The situation for depositors is not the most pleasant - they will have to pay a tax of more than 35%.

The Board of Directors of the Central Bank of Russia expressed a unanimous opinion that the discount key rate should be kept at the level of 11% per annum.

Oil prices highly unstable, which also leads to an increase consumer prices. The situation on the world commodity market is deteriorating, which means that Russian economy must adapt.

In the event of a further deterioration of the situation and the emergence of new inflationary risks, credit policy the Central Bank of the country will tighten. At the next meeting of directors, which took place on March 18, 2016, the issue of the level of the key tariff was submitted for reconsideration.

Source: "spasfinans.ru"

Monetary policy indicators

The indicators of the state's monetary policy are the key rate and the refinancing rate of the Central Bank of the Russian Federation.

Key rate of the Central Bank of the Russian Federation

The key rate was introduced by the Bank of Russia on September 13, 2013 as the main indicator of monetary policy:

Refinancing rate of the Central Bank of the Russian Federation

The refinancing rate was introduced on January 1, 1992 as a single rate for granting loans to commercial banks. Since January 1, 2016, the value of the refinancing rate has been equated to the value of the key rate of the Bank of Russia:

Source: "base.garant.ru"

What is the difference between the two base rates of the Central Bank

Many people in Russia are worried about the currency crisis that broke out in December 2014. The reasons for it are well-known geopolitical events, after which sanctions were imposed against Russia, which provoked a sharp fall in the ruble. In mid-December, the Bank of Russia significantly increased the key rate from 10.5% to 17% per annum. During the previous two years it was 7-8%.

All the inhabitants of our country have heard about this, but not many people guess the reasons for such an increase in the key rate by the Central Bank. Those Russian citizens who keep their money in the bank managed to notice that banks began to offer high stakes on deposits up to 20% per annum.

But how these two events are connected, and also what is the difference between the key rate and another basic concept - the refinancing rate, few people know.

Impact of the key rate

The key rate is the rate of the Central Bank, which it sets for commercial banks, issuing them short-term loans for a period of 1 week. At the same rate, the Bank of Russia accepts deposits from banks in the national currency. This is one of the influential tools of the Central Bank to influence the financial and credit system of the country, introduced in 2013.

The size of the key rate affects the amount that commercial banks will be required to pay for the money received for a short period. Due to a significant increase in the key rate, banks lost the opportunity to buy foreign currency from the population with money taken from the Central Bank, so the ruble exchange rate stopped falling so sharply, and foreign currencies, respectively, grow.

But loans, especially short-term loans, began to rise in price, which will have a very negative impact on financial condition both borrowing organizations and lending banks.

The role of the refinancing rate

The refinancing rate is the most important rate of the Central Bank, the main financial instrument, associated with legislative acts and enacted in 1992.

The main difference between the refinancing rate and the key one is the application of the refinancing rate for long-term loans. Under this rate, the Central Bank lends to commercial banks at an annual percentage rate.

Below this rate, commercial banks will not issue loans, because the excess of interest on loans issued by the bank and the refinancing interest rate is its profit.

The key rate affects Short-term liabilities banks to the Central Bank, and the refinancing rate - for long-term. Apart from economic function, the refinancing rate also plays a fiscal role in the economy:

• It is used in the calculation of fines and penalties in case of non-payment of tax or salary delay.
• The taxation of deposits is tied to it: if interest on ruble deposits exceeds the refinancing rate by 10 points (8.25 + 10%), this interest is considered income and is subject to personal income tax at a rate of 35%.

At present, the words “key rate”, “refinancing” are heard more and more often. At the same time, these concepts are often confused even by professionals, not to mention "mere mortals".

The Central Bank, as the regulator of the state's monetary policy, has certain tools for this. One of the main ones is the discount rate. But at present, this concept includes two rates that are different in their functions: key and refinancing. Both have the same value and it is difficult to understand what their difference is, what they are used for.

So, even the Minister of Finance sometimes in his speeches, speaking about the key rate, used the concept of "refinancing rate".

In simple words about two rates

It would seem that both indicators mean the same thing, namely: the percentage at which the Central Bank finances commercial banks.

However, there are some nuances that distinguish one concept from another.

Before going into detail about the difference between the refinancing rate and the key rate, it is advisable to give a simple definition of both of them.

So, lately there has been confusion between the following concepts:

1. key rate.
   It is the minimum percentage that main bank country provides financing to lending institutions for a period of one week.
2. Refinancing rate.
   It basically has only a reference value, to which the legislative acts of the country are attached.

The calculation of fines depends on the value of this indicator. Thus, many contractors, when drawing up contracts, prescribe the need to pay fines and other sanctions in percentage from the value of the refinancing rate, which before 01/01/2019 was 7.75%.

How is the refinancing rate different from the key

Despite the same size, each bet has its own definition and performs its tasks.

key rate

The key rate reflects the minimum interest rate set by the Central Bank for lending to commercial banks. It is characterized by dynamism and a high frequency of revision (minimum - once a week). A change in its value affects the economy by increasing or decreasing loans issued by commercial banks. An increase in the rate makes loans expensive, which reduces the pressure on the money supply and keeps inflation down.

A striking example of the impact on inflationary processes by a change in the key rate was the period from the end of 2014, when the rate reached its maximum of 17%. This was due to a sharp depreciation of the ruble and the threat of a jump in inflation. This rise did not last long, and already in early 2015 the rate began to decline, reaching 11% in August. At that time, the change was justified, the task of curbing inflation was completed. But such sharp jumps have a negative impact on the economy. An increase in the key rate, and, consequently, an increase in the cost of loans, reduces their availability and reduces growth rates. This is especially true for small and medium businesses.

The value of the key rate is of interest not only to businessmen, it directly affects ordinary citizens as well. The higher the value, the more profitable it is to invest in bank deposits. This also affects inflation, people are interested in carrying money to the bank, reducing the free money supply.

It turns out that when determining the value of the key rate, the Central Bank has the task of finding a golden mean when businesses will be able to receive loans for development at reasonable prices, but restrain the growth of free money and, accordingly, inflation.

Refinancing rate

Refinancing rate - this discount rate determines the amount of interest that commercial banks must pay to the Central Bank for the use of money during the year. That is, it also determines the cost of loans for commercial banks, but for a long period, which, when it was introduced, was used to regulate inflationary processes.

Since its introduction, the refinancing rate has sometimes undergone very drastic changes. Initially, its size was 20%, but in the difficult 90s with sharp changes in the ruble exchange rate, the rapid growth of inflation could reach 200% or more. As the economy stabilized, the rate decreased and came to an acceptable value of 8.25% in 2012.

The refinancing rate is also used in fiscal policy to determine the amount of penalties and fines, personal income tax calculations upon receipt of income from deposits exceeding the discount rate plus 5%. The size of the rate becomes decisive in the calculation of fines for non-fulfillment of obligations under contracts.

Learn about the need to replace the "refinancing rate" with the concept of "key rate" in the video.

Key rate dynamics

The refinancing rate appeared in Russia in 1992. At that time, it was its value that determined the cost of borrowed funds. At the same time, it became a benchmark for calculating fines and penalties in tax system, penalties for late payments in the field of utilities.

Period	Meaning
September 14, 2012 - December 31, 2015	8,25
December 26, 2011 - September 13, 2012	8
May 3, 2011 - December 25, 2011	8,25
February 28, 2011 - May 2, 2011	8
June 1, 2010 - February 27, 2011	7,75
April 30, 2010 - May 31, 2010	8
March 29, 2010 - April 29, 2010	8,25
February 24, 2010 - March 28, 2010	8,5
December 28, 2009 - February 23, 2010	8,75
November 25, 2009 - December 27, 2009	9
October 30, 2009 - November 24, 2009	9,5
September 30, 2009 - October 29, 2009	10
September 15, 2009 - September 29, 2009	10,5
August 10, 2009 - September 14, 2009	10,75
July 13, 2009 - August 9, 2009	11
June 5, 2009 - July 12, 2009	11,5
May 14, 2009 - June 4, 2009	12
April 24, 2009 - May 13, 2009	12,5
December 1, 2008 - April 23, 2009	13
November 12, 2008 - November 30, 2008	12
July 14, 2008 - November 11, 2008	11
June 10, 2008 - July 13, 2008	10,75
April 29, 2008 - June 9, 2008	10,5
February 4, 2008 - April 28, 2008	10,25
June 19, 2007 - February 3, 2008	10
January 29, 2007 - June 18, 2007	10,5
October 23, 2006 - January 28, 2007	11
June 26, 2006 - October 22, 2006	11,5
December 26, 2005 - June 25, 2006	12
June 15, 2004 - December 25, 2005	13
January 15, 2004 - June 14, 2004	14
June 21, 2003 - January 14, 2004	16
February 17, 2003 - June 20, 2003	18
August 7, 2002 - February 16, 2003	21
April 9, 2002 - August 6, 2002	23
November 4, 2000 - April 8, 2002	25
July 10, 2000 - November 3, 2000	28
March 21, 2000 - July 9, 2000	33
March 7, 2000 - March 20, 2000	38
January 24, 2000 - March 6, 2000	45
June 10, 1999 - January 23, 2000	55
July 24, 1998 - June 9, 1999	60
June 29, 1998 - July 23, 1998	80
June 5, 1998 - June 28, 1998	60
May 27, 1998 - June 4, 1998	150
May 19, 1998 - May 26, 1998	50
March 16, 1998 - May 18, 1998	30
March 2, 1998 - March 15, 1998	36
February 17, 1998 - March 1, 1998	39
February 2, 1998 - February 16, 1998	42
November 11, 1997 - February 1, 1998	28
October 6, 1997 - November 10, 1997	21
June 16, 1997 - October 5, 1997	24
April 28, 1997 - June 15, 1997	36
February 10, 1997 - April 27, 1997	42
December 2, 1996 - February 9, 1997	48
October 21, 1996 - December 1, 1996	60
August 19, 1996 - October 20, 1996	80
July 24, 1996 - August 18, 1996	110
February 10, 1996 - July 23, 1996	120
December 1, 1995 - February 9, 1996	160
October 24, 1995 - November 30, 1995	170
June 19, 1995 - October 23, 1995	180
May 16, 1995 - June 18, 1995	195
January 6, 1995 - May 15, 1995	200
November 17, 1994 - January 5, 1995	180
October 12, 1994 - November 16, 1994	170
August 23, 1994 - October 11, 1994	130
August 1, 1994 - August 22, 1994	150
June 30, 1994 - July 31, 1994	155
June 22, 1994 - June 29, 1994	170
June 2, 1994 - June 21, 1994	185
May 17, 1994 - June 1, 1994	200
April 29, 1994 - May 16, 1994	205
October 15, 1993 - April 28, 1994	210
September 23, 1993 - October 14, 1993	180
July 15, 1993 - September 22, 1993	170
June 29, 1993 - July 14, 1993	140
June 22, 1993 - June 28, 1993	120
June 2, 1993 - June 21, 1993	110
March 30, 1993 - June 1, 1993	100
May 23, 1992 - March 29, 1993	80
April 10, 1992 - May 22, 1992	50
January 1, 1992 - April 9, 1992	20

In 2013, a key rate was introduced for a more aggressive way of influencing inflationary processes. The size of the key rate upon introduction was 5.5%, which indicated the state's interest in providing businesses with low-cost loans and increasing investment attractiveness.

Period	Meaning
December 17, 2018	7,75
September 17, 2018 - December 16, 2018	7,50
March 26, 2018 - September 16, 2018	7,25
February 12, 2018 - March 25, 2018	7,50
December 18, 2017 - February 11, 2018	7,75
October 30, 2017 - December 17, 2017	8,25
September 18, 2017 - October 29, 2017	8,50
June 19, 2017 - September 17, 2017	9,00
May 2, 2017 - June 18, 2017	9,25
March 27, 2017 - May 1, 2017	9,75
September 19, 2016 - March 26, 2017	10,00
June 14, 2016 - September 18, 2016	10,50
August 3, 2015 - June 13, 2016	11,00
June 16, 2015 - August 2, 2015	11,50
May 5, 2015 - June 15, 2015	12,50
March 16, 2015 - May 4, 2015	14,00
February 2, 2015 - March 15, 2015	15,00
December 16, 2014 - February 1, 2015	17,00
December 12, 2014 - December 15, 2014	10,50
November 5, 2014 - December 11, 2014	9,50
July 28, 2014 - November 4, 2014	8,00
April 28, 2014 - July 27, 2014	7,50
March 3, 2014 - April 27, 2014	7,00
September 13, 2013 - March 2, 2014	5,50

After the introduction of the key refinancing rate, it lost its function as a regulator of the cost of loans, while retaining the role of an indicator for calculations. For a long time, the refinancing rate remained unchanged from 2013 to 2016 at the level of 8.25%. And only from January 1, 2016, the Central Bank of the Russian Federation decided that the refinancing rate is equal to the key one.

Conclusion

To summarize the above, we can determine what exactly is the difference between these two discount rates:

1. The key rate acts as an instrument of the Central Bank for the formation of the state's monetary policy.
2. The refinancing rate cannot have any influence on the policy pursued by the Central Bank of the Russian Federation.
3. The refinancing rate remains as an indicator or reference material used to calculate fines and penalties. Its preservation made it possible not to change the text of many legislative documents, including the Tax Code of the Russian Federation.

Both rates are currently 7.75%.

Learn about the key rate of the Central Bank of the Russian Federation from the video.

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