To deal with the concept of “refinancing rate” You must first answer the question “what is refinancing?” In article 40 Federal Law No. 86-FZ “On the Central Bank Russian Federation(Bank of Russia)” dated July 10, 2002, it was determined that refinancing means lending by the Bank of Russia to credit institutions.
Refinancing itself is a process during which the borrower pays off a previously obtained (already existing) loan with a new loan. The borrower’s goal when refinancing, as a rule, is to solve the following problems:
- obtaining a new loan for more favorable conditions, for example, at a lower rate, which allows the borrower to reduce their costs. And at the same time, this gives banks the opportunity to change customer lending rates.
- obtaining a new loan in order to extend the loan term. Central Bank loans for commercial banks are additional resources for lending to clients.
However, on September 13, 2013, the Board of Directors Central Bank The Russian Federation made a historic decision to implement a set of measures to improve the instruments of the monetary policy system, according to which the role of the refinancing rate has changed. Now it is of secondary importance and is indicated for reference only. The Bank of Russia now exerts its main influence on monetary policy through key rate, about which you can see >>
“Refinancing rate” - definition and concept
Now we can define the “refinancing rate” and answer the question “what is the refinancing rate?”:Refinancing rate of the Central Bank of the Russian Federation is the interest rate that central bank The Russian Federation uses it when providing loans to commercial banks in the order of refinancing.
It is assumed that refinancing rate, this is the rate formed by the market for some of the most active operations Central Bank, and is used to interact with commercial banks. Today, the refinancing rate is a kind of “negotiable” mechanism for identifying average cost money and is used primarily for fiscal purposes. In fact, the refinancing rate is not an instrument that reflects the market nature of transactions. And it is only needed to understand the value of money, since in market economy You can't do without it. The refinancing rate can be established (identified) through competitive selection, or it can simply be assigned.
The refinancing rate is also a “certain” accompanying mechanism to curb inflationary processes in Russia. When the inflation rate decreases, the refinancing rate also decreases. Thus, when by the end of 2005 the inflation rate was 11.8%, the 2005 refinancing rate dropped to 12%, and by the end of 2006, when inflation dropped to 9%, the Central Bank refinancing rate was lowered to 11.0%. And then in 2007 to 10.5%, and 10.00%. But already from the beginning of 2008, the refinancing rate began to increase: first to 10.25%, then to 10.50% and 10.75%. This was a signal that inflation was above the set parameters and continued to increase, and the Government and the Central Bank were taking measures to curb it. Since the beginning of the world financial crisis The refinancing rate of the Central Bank of Russia for 2008 increased three more times. As of mid-December 2008, the Central Bank rate was 13%, and the inflation forecast was 13.8%.
And Russia ended 2009 with inflation of 8.8% (Rosstat data) and a refinancing rate of 8.75%. During 2009, the rate was lowered 10 times, which was aimed at stimulating the lending activity of banks, curbing inflation and economic growth.
Based on all that has been said, it can be stated that the rate of the Central Bank of Russia is an instrument through which the Bank of Russia influences interest rates on deposits and loans provided by credit institutions to legal entities and individuals. Therefore, in its interest rate policy, commercial banks largely rely on, and sometimes even depend on, the rate of the Central Bank of Russia.
Do changes in refinancing rates affect financial position population? Yes, they do! In a situation where the Central Bank rate is lowered, on the one hand, borrowers will benefit, and on the other hand, depositors of Russian banks will lose, losing part of the profit from their investments. Each change in the refinancing rate is a sign that in the near future changes (revisions) of interest rates on deposits and loans by commercial banks are possible. An analysis of the formation of interest rates on deposits of most leading commercial banks in Russia confirms this. The refinancing rate always reaches almost the level of inflation, which means that in addition to a decrease in profits, interest on most deposits turns out to be below the inflation rate and deposits gradually depreciate in value.
Application of the refinancing rate
Where is the refinancing rate applied? I will give several examples of the application of the refinancing rate. Thus, the Central Bank rate is applied:- When taxing income from deposits. In accordance with the Tax Code of the Russian Federation (TC RF), interest income on certain species deposits individuals are subject to taxation. In accordance with clause 2 of article 224 of part two of the Tax Code of the Russian Federation “ tax rate is set at 35% in relation to interest income on deposits in banks, in part of the excess of the amount calculated based on current rate refinancing of the Central Bank of the Russian Federation. The tax is calculated during the period for which interest on ruble deposits is accrued (except for time deposits) pension deposits deposited for a period of at least six months).
- When calculating the employer’s financial liability for delayed payment wages. In accordance with Article 236 of the Labor Code of the Russian Federation, in case of violation by the employer deadline payment of wages, vacation pay, dismissal payments and other payments due to the employee, the employer is obliged to pay them with interest ( monetary compensation) in an amount not lower than one three hundredth of the current one at that time refinancing rates of the Central Bank of the Russian Federation from unpaid amounts on time for each day of delay starting from the next day after the established payment deadline until the day of actual settlement inclusive. The specific amount of monetary compensation paid to an employee is determined by a collective agreement or employment contract.
- When calculating penalties for late fulfillment of the obligation to pay a tax or fee. In accordance with paragraph 4 of Article 75 of the Tax Code of the Russian Federation, the penalty for each day of delay is determined as a percentage of the unpaid amount of tax or fee. Penalty interest rate is taken equal to one three hundredth of the refinancing rate of the Central Bank of the Russian Federation in force at that time.
From 01/01/2016, the value of the refinancing rate of the Central Bank of the Russian Federation is equal to the value of the key rate of the Bank of Russia on the corresponding date. Since 01/01/2016, an independent value of the refinancing rate is not established and is not shown on the Bank of Russia website.Refinancing rate / Key rate / of the Bank of Russia for today, i.e. from December 17, 2018, is 7.75%. The next Board of Directors of the Bank of Russia, held on February 8, 2019, decided to maintain the key rate at 7.75% per annum. This key rate (7.75%) will remain in effect until March 22, 2019.
And since after December 31, 2015, the refinancing rate corresponds to the key rate and is not set separately by the Bank of Russia, then starting from December 17, 2018, the refinancing rate is also 7.75%.
The decision taken is proactive in nature and is aimed at limiting inflation risks, which remain at an elevated level, especially in the short term. Uncertainty remains regarding further development external conditions, as well as the reaction of prices and inflation expectations to the upcoming VAT increase. Raising the key rate will prevent inflation from becoming stable at a level significantly higher than the Bank of Russia’s target.
Taking into account decision taken The Bank of Russia forecasts annual inflation in the range of 5.0–5.5% at the end of 2019 with a return to 4% in 2020.
The previous key rate of the Bank of Russia was in effect from September 17, 2018 to December 16, 2018 and was 7.50%, i.e. its validity period was three months.
The previous unofficial refinancing rate was also in effect from September 17, 2018 to December 16, 2018 and corresponded to key rate this period (7.50% per annum).
Last officially established The Bank of Russia refinancing rate was in effect from September 14, 2012 to December 31, 2015 and amounted to 8.25% per annum.
The transition to the key rate was made by the Board of Directors of the Bank of Russia, which is set out in the Directive of the Bank of Russia dated December 11, 2015 No. 3894-U “On the refinancing rate of the Bank of Russia and the key rate of the Bank of Russia”).
A from January 1, 2016, even the reference announcement of the refinancing rate by the Bank of Russia is no longer carried out.
Refinancing rate of the Central Bank of the Russian Federation at the end of 2018 and the beginning of 2019
On February 8, 2019, the Board of Directors of the Bank of Russia decided to maintain the key rate at 7.75% per annum. The refinancing rate (unofficial) will also be 7.75% per annum.When deciding to maintain the key rate/refinancing rate at 7.75%, the Board of Directors of the Bank of Russia proceeded from the following:
Inflation dynamics. Annual inflation in January 2019 corresponded to the lower limit of the Bank of Russia’s expectations. In January, the annual growth rate consumer prices increased to 5.0% (from 4.3% in December 2018). The contribution of the VAT increase to the annual growth rate of consumer prices in January was moderate. The full impact of VAT on inflation can be assessed no earlier than April current year. A significant role in the increase in inflation in January was played by the increase in the growth rate of food prices to 5.5% (from 4.7% in December 2018). The acceleration of food inflation is largely of a recovery nature after its significant decline in the second half of 2017 - the first half of 2018. In addition, price adjustments to the weakening of the ruble that occurred in the second half of 2018 are being completed. Prices for non-food goods and services over the past 12 months have increased less than in the food market.In January, enterprises' price expectations increased due to the earlier weakening of the ruble and an increase in VAT. The population's inflation expectations increased slightly.
According to the forecast of the Bank of Russia, under the influence of the VAT increase and the weakening of the ruble that occurred in 2018, annual inflation will temporarily accelerate, reaching a maximum in the first half of 2019, and will amount to 5.0–5.5% at the end of 2019. The quarterly growth rate of consumer prices in annual terms will slow down to 4% in the second half of 2019. Annual inflation will return to 4% in the first half of 2020, when the effects of the weakening of the ruble and the VAT increase will be exhausted.
Monetary conditions. Since the previous meeting of the Board of Directors of the Bank of Russia, monetary conditions have not changed significantly. The dynamics of interest rates in various segments of the domestic financial market were multidirectional. OFZ yields decreased amid the stabilization of the situation in foreign markets. financial markets. Rates on the deposit and credit market increased slightly. Maintaining positive real interest rates on deposits and bonds will support the attractiveness of savings and balanced consumption growth.
Economic activity. According to Rosstat’s first estimate, GDP growth for 2018 was 2.3%, which is higher than the Bank of Russia’s forecast of 1.5–2%. However, in recent months In 2018, business activity growth slowed down. In December, the growth rate of industrial production, volume construction work, real wages and turnover retail. The Bank of Russia maintains its growth rate forecast GDP growth at 1.2–1.7% in 2019. The VAT increase may have a slight restraining effect on business activity, mainly at the beginning of the year. Additional received budget resources Already in 2019, they will be aimed at increasing government spending, including of an investment nature. In subsequent years, the pace may increase economic growth as planned structural measures are implemented.
Inflation risks. The balance of risks remains shifted towards pro-inflationary risks, especially in the short term due to the increase in VAT and price dynamics for certain food products. Uncertainty remains regarding the further development of external conditions and their impact on prices financial assets. Despite the growth oil prices in January 2019, the risks of supply exceeding demand in the oil market in 2019 remain elevated.
Revisions to the expected pace of monetary tightening by the US Federal Reserve and other developed market central banks are reducing the risks of sustained capital outflows from emerging markets. At the same time, geopolitical factors may lead to increased volatility in commodity and financial markets and affect exchange rate and inflation expectations.
The Bank of Russia’s assessment of risks associated with wage dynamics, possible changes in consumer behavior, budget expenditures, has not changed significantly. These risks remain moderate.
The Bank of Russia will make decisions on the key rate, assessing the adequacy of the key rate increase in September and December 2018 to return annual inflation to the target in 2020, taking into account the dynamics of inflation and the economy relative to the forecast, as well as risks from external conditions and reactions to them financial markets.
The next meeting of the Board of Directors of the Bank of Russia, at which the issue of the level of the key rate will be considered, is scheduled for March 22, 2019. Time of publication of a press release on the decision of the Board of Directors of the Bank of Russia - 13:30 Moscow time.
Dynamics of the Bank of Russia refinancing rate from 1992 to 2015. And further...
The material analyzes the dynamics of the refinancing rate over the past 20 years - starting from January 1, 1992. The highest refinancing rate, which was set by the Central Bank of the Russian Federation in the period from October 15, 1993 to April 28, 1994, was 210%. Over the course of 10 years, the rate of change in the Central Bank's refinancing rate slowed down, that is, the refinancing rate became more stable. In the period from 1993 to 2000, the refinancing rate changed mainly during the year from 5 to 9 times. In the period from 2002 to 2007, the refinancing rate stabilized and changed during the year from 1 to 3 times, and only downward.During 2008, the refinancing rate of the Central Bank of the Russian Federation constantly grew, and especially often after the start of the global financial crisis. In 2008, the refinancing rate changed 6 times, and this despite the fact that almost all central banks of the leading countries in the world revised rates downward. But despite the difficult financial period, Russia ended 2008 with a refinancing rate of 13.00%. (Instruction of the Central Bank of the Russian Federation dated November 28, 2008 No. 2135-U “On the amount of the refinancing rate of the Bank of Russia”) and an inflation rate of 13.3%, i.e. The Central Bank of the Russian Federation kept the situation under control.
The refinancing rate of the Central Bank of the Russian Federation changed 10 times during 2009, all downward. Russia ended 2009 with a Central Bank refinancing rate of 8.75% and inflation of 8.8% (Rosstat data), and these were the lowest figures since 1991, that is, in the entire history of post-Soviet Russia. Set by the regulator so low rate refinancing was aimed at stimulating the lending activity of banks, as well as curbing inflation processes.
In 2010, the Central Bank's refinancing rate changed only 4 times, and only downwards. In 2010, the lowest refinancing rate in the entire existence of the Russian Federation was also recorded at 7.75%, which was in effect from June 1, 2010 to February 27, 2011. Russia ended 2010 with a Central Bank refinancing rate of 7.75% and inflation of 8.8%.
Russia ended 2011 with a refinancing rate of 8.00%. This was the fourth value of the Bank of Russia refinancing rate for the year. During the year, the rate was revised three times. Inflation in the Russian Federation in 2011 was 6.1%, which is a historical minimum for the country.
2012 ended with a refinancing rate of 8.25% and inflation of 6.6%. During 2012, the refinancing rate was changed by the Bank of Russia only once - from September 14, upward by 0.25 points. During the previous eight months of 2012, the refinancing rate was 8.00%.
2013 in Russia ended with a refinancing rate of 8.25%, a key rate of 5.5%, and inflation of 6.5%. Throughout 2013, the Bank of Russia refinancing rate remained unchanged and amounted to 8.25%. And from September 13 of this year, the refinancing rate began to play a secondary role and is provided by the Bank of Russia for reference. According to the Bank of Russia project, by 2016 the refinancing rate will have to be equal in value to the key rate.
2014 ended with a refinancing rate of 8.25%, a key rate of 17% and inflation of 11.4%. During 2014, the policy of the Central Bank of the Russian Federation should have continued to adjust it to the level of the key rate. In fact, from January to December 2014, the refinancing rate did not change, and due to the sharp increase in the key rate at the end of the year, its change still looks unrealistic.
Throughout 2015, the refinancing rate did not change and the year ended with a refinancing rate of 8.25% and a key rate of 11.0%.
At the beginning of 2016, the refinancing rate was 11.00%, the same as the key rate, and subsequently the change in the refinancing rate occurred simultaneously with the change in the key rate of the Bank of Russia and by the same amount. From January 1, 2016, an independent value of the refinancing rate is not established and the dynamics are not recorded. The key rate changed twice during 2016 (to 10.5% and to 10.0%). At the end of 2016, the key rate was kept at 10.00%.
The key rate/refinancing rate for 2017 changed 6 times and all downward - from 10.11% to 7.75% (At the beginning of the year it was 10.0%, from March 27, 2017 it decreased to 9.75% , from 05/02/2017 decreased to 9.25%, from 06/19/2017 - 9.00%, from 09/18/2017 to 8.50%, from 10/30/2017 to 8.25%, and from 12/18. 2017 to 7.75%).
At the beginning of 2018, the Bank of Russia maintained the key rate at 7.75% per annum, from 02/12/2018 it was reduced to 7.50%, from 03/26/2018 it was reduced to 7.25%, and from 09/17/2018 it was increased to 7. 50% due to changes in external conditions. On December 17, 2018, the last rate change of that year was made to 7.75%, this is the 5th key rate /refinancing rate/ established during 2018.
At the beginning of 2019, the key rate of the Bank of Russia returned to 7.75% per annum and remains at this level for now.
Below are all the refinancing rates of the Central Bank of the Russian Federation, starting from 1992 and until the date of cancellation of its independent official establishment.
| Period of validity of the refinancing rate | Refinancing rate (%) | Regulatory document |
|---|---|---|
| 01/01/2016* | From this date, the value of the refinancing rate corresponds to the value of the key rate of the Bank of Russia - on the corresponding installation date | Directive of the Bank of Russia dated December 11, 2015 No. 3894-U “On the refinancing rate of the Bank of Russia and the key rate of the Bank of Russia” |
| September 14, 2012 - December 31, 2015 | 8,25 | Directive of the Bank of Russia dated September 13, 2012 No. 2873-U |
| December 26, 2011 - September 13, 2012 | 8,00 | Directive of the Bank of Russia dated December 23, 2011 No. 2758-U |
| May 3, 2011 - December 25, 2011 | 8,25 | Directive of the Bank of Russia dated April 29, 2011 No. 2618-U |
| February 28, 2011 - May 2, 2011 | 8,00 | Directive of the Bank of Russia dated February 25, 2011 No. 2583-U |
| June 01, 2010 - February 27, 2011 | 7,75 | Directive of the Bank of Russia dated May 31, 2010 No. 2450-U |
| April 30, 2010 - May 31, 2010 | 8,00 | Directive of the Bank of Russia dated April 29, 2010 No. 2439-U |
| March 29, 2010 - April 29, 2010 | 8,25 | Directive of the Bank of Russia dated March 26, 2010 No. 2415-U |
| February 24, 2010 – March 28, 2010 | 8,50 | Directive of the Bank of Russia dated February 19, 2010 No. 2399-U |
| December 28, 2009 – February 23, 2010 | 8,75 | Directive of the Bank of Russia dated December 25, 2009 No. 2369-U |
| November 25 - December 27, 2009 | 9,0 | Directive of the Bank of Russia dated November 24, 2009 No. 2336-U |
| October 30, 2009 - November 24, 2009 | 9,50 | Directive of the Bank of Russia dated October 29, 2009 No. 2313-U |
| September 30, 2009 – October 29, 2009 | 10,00 | Directive of the Bank of Russia dated September 29, 2009 No. 2299-U |
| September 15, 2009 – September 29, 2009 | 10,50 | Directive of the Bank of Russia dated September 14, 2009 No. 2287-U |
| August 10, 2009 – September 14, 2009 | 10,75 | Directive of the Central Bank of the Russian Federation dated August 7, 2009 No. 2270-U |
| July 13, 2009 – August 9, 2009 | 11,0 | Directive of the Central Bank of the Russian Federation dated July 10, 2009 No. 2259-U |
| June 5, 2009 – July 12, 2009 | 11,5 | Directive of the Central Bank of the Russian Federation dated June 4, 2009 No. 2247-U |
| May 14, 2009 – June 4, 2009 | 12,0 | Directive of the Central Bank of the Russian Federation dated May 13, 2009 No. 2230-U |
| April 24, 2009 - May 13, 2009 | 12,5 | Directive of the Central Bank of the Russian Federation dated April 23, 2009 No. 2222-U |
| December 1, 2008 – April 23, 2009 | 13,00 | Directive of the Central Bank of the Russian Federation dated November 28, 2008 No. 2135-U |
| November 12, 2008 – November 30, 2008 | 12,00 | Directive of the Central Bank of the Russian Federation dated November 11, 2008 No. 2123-U |
| July 14, 2008 - November 11, 2008 | 11,00 | Directive of the Central Bank of the Russian Federation dated July 11, 2008 No. 2037-U |
| June 10, 2008 – July 13, 2008 | 10,75 | Directive of the Central Bank of the Russian Federation dated 06/09/2008 No. 2022-U |
| April 29, 2008 – June 9, 2008 | 10,5 | Directive of the Central Bank of the Russian Federation dated April 28, 2008 No. 1997-U |
| February 4, 2008 – April 28, 2008 | 10,25 | Directive of the Central Bank of the Russian Federation dated February 1, 2008 No. 1975-U |
| June 19, 2007 – February 3, 2008 | 10,0 | Telegram of the Central Bank of the Russian Federation dated June 18, 2007 No. 1839-U |
| January 29, 2007 – June 18, 2007 | 10,5 | Telegram of the Central Bank of the Russian Federation dated January 26, 2007 No. 1788-U |
| October 23, 2006 – January 22, 2007 | 11 | Telegram of the Central Bank of the Russian Federation dated October 20, 2006 No. 1734-U |
| June 26, 2006 – October 22, 2006 | 11,5 | Telegram of the Central Bank of the Russian Federation dated June 23, 2006 No. 1696-U |
| December 26, 2005 – June 25, 2006 | 12 | Telegram of the Central Bank of the Russian Federation dated December 23, 2005 No. 1643-U |
| June 15, 2004 – December 25, 2005 | 13 | Telegram of the Central Bank of the Russian Federation dated June 11, 2004 No. 1443-U |
| January 15, 2004 – June 14, 2004 | 14 | Telegram of the Central Bank of the Russian Federation dated January 14, 2004 No. 1372-U |
| June 21, 2003 – January 14, 2004 | 16 | Telegram of the Central Bank of the Russian Federation dated June 20, 2003 No. 1296-U |
| February 17, 2003 – June 20, 2003 | 18 | Telegram of the Central Bank of the Russian Federation dated February 14, 2003 No. 1250-U |
| August 7, 2002 – February 16, 2003 | 21 | Telegram of the Central Bank of the Russian Federation dated 06.08.2002 No. 1185-U |
| April 9, 2002 – August 6, 2002 | 23 | Telegram of the Central Bank of the Russian Federation dated April 8, 2002 No. 1133-U |
| November 4, 2000 – April 8, 2002 | 25 | Telegram of the Central Bank of the Russian Federation dated November 3, 2000 No. 855-U |
| July 10, 2000 – November 3, 2000 | 28 | Telegram of the Central Bank of the Russian Federation dated July 7, 2000 No. 818-U |
| March 21, 2000 – July 9, 2000 | 33 | Telegram of the Central Bank of the Russian Federation dated March 20, 2000 No. 757-U |
| March 7, 2000 – March 20, 2000 | 38 | Telegram of the Central Bank of the Russian Federation dated March 6, 2000 No. 753-U |
| January 24, 2000 – March 6, 2000 | 45 | Telegram of the Central Bank of the Russian Federation dated January 21, 2000 No. 734-U |
| June 10, 1999 – January 23, 2000 | 55 | Telegram of the Central Bank of the Russian Federation dated 06/09/99 No. 574-U |
| July 24, 1998 – June 9, 1999 | 60 | Telegram of the Central Bank of the Russian Federation dated July 24, 1998 No. 298-U |
| June 29, 1998 – July 23, 1998 | 80 | Telegram of the Central Bank of the Russian Federation dated June 26, 1998 No. 268-U |
| June 5, 1998 – June 28, 1998 | 60 | Telegram of the Central Bank of the Russian Federation dated 06/04/98 No. 252-U |
| May 27, 1998 – June 4, 1998 | 150 | Telegram of the Central Bank of the Russian Federation dated May 27, 1998 No. 241-U |
| May 19, 1998 – May 26, 1998 | 50 | Telegram of the Central Bank of the Russian Federation dated May 18, 1998 No. 234-U |
| March 16, 1998 – May 18, 1998 | 30 | Telegram of the Central Bank of the Russian Federation dated March 13, 1998 No. 185-U |
| March 2, 1998 – March 15, 1998 | 36 | Telegram of the Central Bank of the Russian Federation dated February 27, 1998 No. 181-U |
| February 17, 1998 – March 1, 1998 | 39 | Telegram of the Central Bank of the Russian Federation dated February 16, 1998 No. 170-U |
| February 2, 1998 – February 16, 1998 | 42 | Telegram of the Central Bank of the Russian Federation dated January 30, 1998 No. 154-U |
| November 11, 1997 – February 1, 1998 | 28 | Telegram of the Central Bank of the Russian Federation dated November 10, 1997 No. 13-U |
| October 6, 1997 – November 10, 1997 | 21 | Telegram of the Central Bank of the Russian Federation dated 01.10.97 No. 83-97 |
| June 16, 1997 – October 5, 1997 | 24 | Telegram of the Central Bank of the Russian Federation dated June 13, 1997 No. 55-97 |
| April 28, 1997 – June 15, 1997 | 36 | Telegram of the Central Bank of the Russian Federation dated April 24, 1997 No. 38-97 |
| February 10, 1997 – April 27, 1997 | 42 | Telegram of the Central Bank of the Russian Federation dated 02/07/97 No. 9-97 |
| December 2, 1996 – February 9, 1997 | 48 | Telegram of the Central Bank of the Russian Federation dated November 29, 1996 No. 142-96 |
| October 21, 1996 – December 1, 1996 | 60 | Telegram of the Central Bank of the Russian Federation dated October 18, 1996 No. 129-96 |
| August 19, 1996 – October 20, 1996 | 80 | Telegram of the Central Bank of the Russian Federation dated August 16, 1996 No. 109-96 |
| July 24, 1996 – August 18, 1996 | 110 | Telegram of the Central Bank of the Russian Federation dated July 23, 1996 No. 107-96 |
| February 10, 1996 – July 23, 1996 | 120 | Telegram of the Central Bank of the Russian Federation dated 02/09/96 No. 18-96 |
| December 1, 1995 – February 9, 1996 | 160 | Telegram of the Central Bank of the Russian Federation dated November 29, 1995 No. 131-95 |
| October 24, 1995 – November 30, 1995 | 170 | Telegram of the Central Bank of the Russian Federation dated October 23, 1995 No. 111-95 |
| June 19, 1995 – October 23, 1995 | 180 | Telegram of the Central Bank of the Russian Federation dated June 16, 1995 No. 75-95 |
| May 16, 1995 – June 18, 1995 | 195 | Telegram of the Central Bank of the Russian Federation dated May 15, 1995 No. 64-95 |
| January 6, 1995 – May 15, 1995 | 200 | Telegram of the Central Bank of the Russian Federation dated 01/05/95 No. 3-95 |
| November 17, 1994 – January 5, 1995 | 180 | Telegram of the Central Bank of the Russian Federation dated November 16, 1994 No. 199-94 |
| October 12, 1994 – November 16, 1994 | 170 | Telegram of the Central Bank of the Russian Federation dated October 11, 1994 No. 192-94 |
| August 23, 1994 – October 11, 1994 | 130 | Telegram of the Central Bank of the Russian Federation dated August 22, 1994 No. 165-94 |
| August 1, 1994 – August 22, 1994 | 150 | Telegram of the Central Bank of the Russian Federation dated July 29, 1994 No. 156-94 |
| June 30, 1994 – July 31, 1994 | 155 | Telegram of the Central Bank of the Russian Federation dated June 29, 1994 No. 144-94 |
| June 22, 1994 – June 29, 1994 | 170 | Telegram of the Central Bank of the Russian Federation dated June 21, 1994 No. 137-94 |
| June 2, 1994 – June 21, 1994 | 185 | Telegram of the Central Bank of the Russian Federation dated 01.06.94 No. 128-94 |
| May 17, 1994 – June 1, 1994 | 200 | Telegram of the Central Bank of the Russian Federation dated May 16, 1994 No. 121-94 |
| April 29, 1994 – May 16, 1994 | 205 | Telegram of the Central Bank of the Russian Federation dated April 28, 1994 No. 115-94 |
| October 15, 1993 – April 28, 1994 | 210 | Telegram of the Central Bank of the Russian Federation dated October 14, 1993 No. 213-93 |
| September 23, 1993 – October 14, 1993 | 180 | Telegram of the Central Bank of the Russian Federation dated September 22, 1993 No. 200-93 |
| July 15, 1993 – September 22, 1993 | 170 | Telegram of the Central Bank of the Russian Federation dated July 14, 1993 No. 123-93 |
| June 29, 1993 – July 14, 1993 | 140 | Telegram of the Central Bank of the Russian Federation dated June 28, 1993 No. 111-93 |
| June 22, 1993 – June 28, 1993 | 120 | Telegram of the Central Bank of the Russian Federation dated June 21, 1993 No. 106-93 |
| June 2, 1993 – June 21, 1993 | 110 | Telegram of the Central Bank of the Russian Federation dated 01.06.93 No. 91-93 |
| March 30, 1993 – June 1, 1993 | 100 | Telegram of the Central Bank of the Russian Federation dated March 29, 1993 No. 52-93 |
| May 23, 1992 – March 29, 1993 | 80 | Telegram of the Central Bank of the Russian Federation dated May 22, 1992 No. 01-156 |
| April 10, 1992 – May 22, 1992 | 50 | Telegram of the Central Bank of the Russian Federation dated April 10, 1992 No. 84-92 |
| January 1, 1992 – April 9, 1992 | 20 | Telegram of the Central Bank of the Russian Federation dated December 29, 1991 No. 216-91 |
*The value of the Bank of Russia refinancing rate from January 1, 2016 is equal to the value of the Bank of Russia key rate on the corresponding date. From 01/01/2016, an independent value of the refinancing rate is not established.
Dynamics of the Bank of Russia Key Rate for the period 2016 - 2018 looks like this:
| Validity period of the key rate | Key rate (refinancing rate*) -% |
|---|---|
| from December 17, 2018 - to March 22, 2019 (approximate date) | 7,75 |
| from September 17, 2018 - to December 16, 2018 | 7,50 |
| from March 26, 2018 to September 16. | 7,25 |
| from February 12, 2018 to March 25, 2018. | 7,50 |
| from December 18, 2017 to February 11, 2018. | 7,75 |
| from October 30, 2017 to December 17, 2017. | 8,25 |
| from September 18, 2017 to October 29, 2017. | 8,50 |
| from June 19, 2017 - to September 17, 2017. | 9,00 |
| from May 02, 2017 - to June 18, 2017. | 9,25 |
| from March 27, 2016 to May 1, 2017. | 9,75 |
| from September 19, 2016 to March 26, 2017. | 10,00 |
| from June 14, 2016 - to September 18, 2016 | 10,50 |
| from January 1, 2016 - to June 13, 2016 | 11,00 |
The dynamics of the key rate since its introduction (from September 13, 2013) and the history of its introduction can be viewed
The key rate/refinancing rate for today (from 12/17/2018 to 02/08/2019) is 7.75%.
Decisions made by the Bank of Russia on the refinancing rate
The Board of Directors of the Bank of Russia made the decision to improve the system of monetary policy instruments on September 13, 2013. Based on this decision, the key rate began to play the main role in the bank’s policy, and the refinancing rate plays a secondary role and is given for reference. In addition, the Board of Directors of the Central Bank decided that in the period from September 13, 2013 to January 1, 2016, the refinancing rate will be adjusted to the level of the key rate.
From 01/01/2016 the refinancing rate on the website Central Russia The Russian Federation is no longer even given as a reference, since it now corresponds to the key rate.
The decision to adjust the refinancing rate was made on December 11, 2015 The Bank of Russia together with the Government, which provides for the following:
- from January 1, 2016, by decision of the Board of Directors of the Bank of Russia dated December 11, 2015, the value of the refinancing rate is equal to the value of the Bank of Russia key rate determined on the corresponding date and further its independent value is not established. In the future, changes in the refinancing rate will occur simultaneously with changes in the key rate of the Bank of Russia by the same amount.
- from January 1, 2016, the Government of the Russian Federation will also use the key rate of the Bank of Russia in all regulations instead of the refinancing rate (the order was signed by the Prime Minister of Russia D. Medvedev).
The refinancing rate of the Central Bank of the Russian Federation today is 7.75% (the same as the key rate)
This annual interest, under which another person can receive a loan from the Central Bank of the Russian Federation credit organisation. In a number foreign countries a term such as “discount rate” may be used. The rate conventionally reflects the current cost of money for the economy. On September 13, 2013, a separate one was introduced, which made the refinancing rate a secondary instrument. From January 1, 2016, the refinancing rate is equal to the key rate.
How is it calculated? Its final value is influenced by many factors: the state of the economy, inflation in the country, the level of consumer prices, the situation on banking market, and sometimes foreign policy.
Why is it needed and what does it affect?
- Limitation of maximum rates on deposits. According to clause 7 of Article 74 of the law on the central bank, the Bank of Russia has the right to introduce a limit on the maximum interest rate on a deposit. Such a restriction cannot be:
- below 2/3 of the rate on deposits in rubles;
- lower than the LIBOR rate on deposits in foreign currency.
Thus, the lower limit of the deposit rate is 5.5% (at a rate of 8.25). The upper limit is determined based on the average maximum rate on deposits of TOP-10 banks (determined 3 times a month). - Commercial bank loan rates. Obtaining loans from the Central Bank is also one of the sources of funds for commercial banks. Consequently, the cost of these funds will also affect the final cost of the loan. Those. the lower the rate, the cheaper loans can be to end borrowers. At the same time, on the other hand, deposit rates in this situation will decrease. Of course, there is no direct relationship here, but the impact of the refinancing rate of the central bank of the Russian Federation is quite noticeable.
- Personal income tax on deposits. Income received that exceeds the official rate by 5% is taxed. The refinancing rate today is 8.25%, therefore the tax-free interest on the deposit is up to 13.25 inclusive. If you receive income over high rate, then you will have to pay 35% personal income tax on the difference (Articles 214.2, 224 of the Tax Code of the Russian Federation).
Example: you opened a deposit at 15% per annum for a period of 1 year in the amount of 500,000 rubles. The tax in this case can be calculated as follows:
Taxable base = (15%*500000) - (13.25%*500000) = 75,000 - 66250 = 8750
The amount of tax payable is 35*8750 = 3062.50 rubles.
For individuals, the tax payment agent is a credit institution, so tax will be automatically withheld from you to be transferred to the budget. Thus, at the end of the deposit agreement, you will receive 71,937.50 rubles. - Violation of deadlines for payment of various taxes and fees. Regulated by clause 4 of article 75 of the Tax Code of the Russian Federation. Penalties are calculated according to 1/300 of the current interest rate. To calculate various penalties, we recommend using ours; it already contains all the necessary calculation options.
- Interest for using others' in cash, and material benefit from saving on them. According to Art. 212 of the Tax Code of the Russian Federation - calculated based on 2/3 of the current rate.
- Loan agreement without specifying interest. According to paragraph 1 of Art. 809 of the Civil Code of the Russian Federation, interest is calculated as a single refinancing rate of the Bank of Russia.
- Financial liability for delays in wages and other payments. According to Art. 236 of the Labor Code of the Russian Federation, in such cases, the employee for the delay must be accrued interest based on 1/300 of the rate.
| Periods | % |
Refinancing rate 2019 |
|
| current refinancing rate of the Central Bank of the Russian Federation | equal to the Bank of Russia key rate |
2018-2019 |
|
| December 17, 2018 – to date | 7,75 |
| September 17, 2018 – December 16, 2018 | 7,5 |
| March 26, 2018 – September 16, 2018 | 7,25 |
| February 12, 2018 – March 25, 2018 | 7,5 |
| December 18, 2017 – February 11, 2018 | 7,75 |
2017 |
|
| October 30, 2017 – December 17, 2017 | 8,25 |
| September 18, 2017 – October 29, 2017 | 8,5 |
| June 19, 2017 – September 17, 2017 | 9 |
| May 2, 2017 – June 18, 2017 | 9,25 |
| March 27, 2017 – May 1, 2017 | 9,75 |
| September 19, 2016 – March 26, 2017 | 10 |
2016 |
|
| June 14, 2016 - September 18, 2016 | 10,5 |
| January 1, 2016 - June 13, 2016 | 11 |
2012-2015 |
|
| September 14, 2012 - December 31, 2015 | 8,25 |
2011 |
|
| December 26, 2011 - September 13, 2012 | 8 |
| May 3, 2011 - December 25, 2011 | 8,25 |
| February 28, 2011 - May 2, 2011 | 8 |
2010 |
|
| 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 |
year 2009 |
|
| 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 |
Before 2008 |
|
| 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 |
The concept of a rebate rate is familiar to many as a value used when calculating fines or penalties, granting tax deferments, calculating personal income tax on financial benefits, etc. At the same time, this is one of the main instruments of the state in its monetary policy, established by the Central Bank. Let's consider whether the refinancing rate is in effect in Russia in 2018, what percentage it is and how it affects the economy.
Ref rate or key rate?
The annual percentage that ordinary banks must pay to the Central Bank when borrowing from it is called the refinancing rate. At the same time, there is a key rate introduced in Russia since September 2013, which represents minimum percentage, under which banks receive weekly loans from the Central Bank of the Russian Federation, it is also maximum rate on deposits accepted by the Central Bank from commercial banks.
Since 2016, the concept of “refinancing rate of the Central Bank of the Russian Federation” has actually come to mean the key rate. The Central Bank of the Russian Federation equalized these indicators with each other in 2016, but previously their values were established independently of each other (Instruction of the Central Bank of the Russian Federation dated December 11, 2015 No. 3894-U). Thus, the Central Bank’s refinancing rate for 2018 is not accepted separately, but in everyday life this term continues to be used, implying the key rate, so we will use it too.
Refinancing rate in 2018
When the government increases the interest rate, bank interest rates on loans and deposits also increase, because commercial banks cannot set their interest rates lower than what they have to pay to the Central Bank, and taking into account their own costs, their interest rates will always be higher. At the same time, citizens prefer to save their money, take out fewer loans, and commodity demand, prices and inflation decrease. When the interest rate decreases, the reverse process is observed: loan and deposit interest rates decrease, loans become more accessible, and the level of demand, prices and inflation in the country increases.
The next revision of the refinancing rate in 2018 occurred quite recently - on March 23. The rate was lowered again and is now 7.25% per annum, and it should be applied from March 26, 2018.
What to expect from the downgrade? It is obvious that interest rates are also going down. bank loans Consequently, people have more money, demand is growing, and with it prices are steadily rising.
How the refinancing rate changed 2016-2018
In 2018, this is already the second change in the refset. The Central Bank is committed to its gradual reduction, since a sharp change in the indicator could result in an equally sharp depreciation of the ruble due to “cheap” loans. A gradual approach helps keep demand, and therefore inflation, at an acceptable level.
Key rate (refinancing rate) in 2017-2018 table:
|
Validity |
Meaning, % |
|
12.02.18 – 25.03.18 |
|
|
18.12.17 – 11.02.18 |
|
|
30.10.17 – 17.12.17 |
|
|
18.09.17 – 29.10.17 |
|
|
19.06.17 – 17.09.17 |
|
|
02.05.17 – 18.06.17 |
|
|
27.03.17 – 01.05.17 |
|
|
19.09.16 – 26.03.17 |
|
|
14.06.16 – 18.09.16 |
The table clearly demonstrates the continuing dynamics of the reduction in the refinancing rate in February-March 2018. It will definitely remain at 7.25% until April 27, 2018 - it is on this date that the next meeting of the Board of Directors of the Central Bank of the Russian Federation is scheduled, where the issue of its future level will be decided .
Refinancing rate forecast for 2018
According to the Bank of Russia, annual inflation remains at a consistently low level today (2.2% in February 2018), which may continue in the first half of the year, and by 2019 will not exceed 4%. Monetary conditions continue to soften, and the most likely trend is towards a further reduction in the key rate (refinancing rate) of the Bank of Russia in 2018 in order to move to a neutral monetary policy by the end of the year. Analysts talk about at least one more possible reduction in the refinancing rate of the Central Bank of the Russian Federation in 2018 under such conditions by the end of the year in the range of 6-6.5%, but not more than 7%.
Let's tell you what the indicator is refinancing rates in 2017, why you need to have this information and when to apply it in practice.
Basics
Other name refinancing rates of the Central Bank of the Russian Federation – discount rate. It is measured as a percentage. This indicator is set by the Central Bank. It is also the Bank of Russia.
It is one of the key factors economic environment. Its main goal is to show how much a loan from the main bank of the country costs for an ordinary bank. But not only. It is also actively used in tax purposes, as well as for calculating sanctions in relation to both controllers and payers - penalties at the refinancing rate and fines. It is directly related to the return delay period mandatory payments. Therefore, every accountant must operate with the most accurate and up-to-date data on its meaning.
Sometimes the refinancing rate serves as a guideline for interest for deferment or installment payment of taxes (clause 4 of article 64 of the Tax Code of the Russian Federation). In addition, interest for the investment tax credit is calculated on its basis.
It should be noted that some time ago the Central Bank of the Russian Federation introduced a similar indicator - the key rate, which confused and confused many practitioners. Particular difficulties arose when it was necessary to find out the amount of interest on a controlled debt, which made it possible to reduce income tax. There were reasonable doubts about which rate to focus on – the key rate or the refinancing rate. From the text of the relevant rules Tax Code it wasn't clear.
But recently all doubts have been dispelled. The fact is that since 2016 these two indicators have been unified. The following approach was chosen: from January 1, 2016, the refinancing rate was equal to the key rate for a specific date. Since that time, the Central Bank of the Russian Federation has not separately determined the percentage of the refinancing rate. Simply put, they will change simultaneously.
Size this year
At the time of writing this article refinancing rate in 2016 year acquired two meanings. So, from the beginning of the year it was 11 percent. Since June 14, it has been slightly reduced - to 10.5 percent. On September 16, 2016, the Central Bank of the Russian Federation, following a meeting, reduced the rate to 10 percent. Cm. " ". That's how calculating the refinancing rate for today. 2016 the year shows an encouraging trend.
From an economic point of view, this decrease means a positive trend. First of all, due to a decrease in the rate of price growth.
We also note that in the 1st-2nd quarter of 2017, the leadership of the Central Bank of the Russian Federation plans to again raise the issue of reducing official refinancing rate. But it’s not a fact that there will actually be adjustments.
In general, it is interesting to trace the dynamics refinancing rates by year. This very clearly shows what is happening to the economy of our country. For what - see refinancing rates in the table (including refinancing rate indicators in 2017).
| From what date is it valid? | Bet size |
| 24.03.2017 | 9,75 |
| 16.09.2016 | 10 |
| 14.06.2016 | 10,5 |
| 01.01.2016 | 11 |
| 14.09.2012 | 8,25 |
| 26.12.2011 | 8 |
| 03.05.2011 | 8,25 |
| 28.02.2011 | 8 |
| 01.06.2010 | 7,75 |
| 30.04.2010 | 8 |
| 29.03.2010 | 8,25 |
| 24.02.2010 | 8,5 |
| 28.12.2009 | 8,75 |
| 25.11.2009 | 9 |
| 30.10.2009 | 9,5 |
| 30.09.2009 | 10 |
| 15.09.2009 | 10,5 |
| 10.08.2009 | 10,75 |
| 13.07.2009 | 11 |
| 05.06.2009 | 11,5 |
| 14.05.2009 | 12 |
| 24.04.2009 | 12,5 |
| 01.12.2008 | 13 |
| 12.11.2008 | 12 |
| 14.07.2008 | 11,0 |
| 10.06.2008 | 10,75 |
| 29.04.2008 | 10,5 |
| 04.02.2008 | 10,25 |
| 19.06.2007 | 10 |
| 29.01.2007 | 10,5 |
| 23.10.2006 | 11,0 |
| 26.06.2006 | 11,5 |
| 26.12.2005 | 12 |
| 15.06.2004 | 13 |
| 15.01.2004 | 14 |
| 21.06.2003 | 16 |
| 17.02.2003 | 18 |
| 07.08.2002 | 21 |
| 09.04.2002 | 23 |
| 04.11.2000 | 25 |
| 10.07.2000 | 28 |
| 21.03.2000 | 33 |
| 07.03.2000 | 38 |
| 24.01.2000 | 45 |