To manage your finances wisely, you need to understand what external factors can affect your well-being. One of these factors is the key rate of the Central Bank of the Russian Federation. In this article, we explain in simple terms what this means, how the increase and decrease of the KS affect the life of the population and give clear instructions for action.
Key rate of the Central Bank - what is it
The Central Bank of the Russian Federation's KS is the qatar mobile database percentage at which the Central Bank issues loans to commercial banks. The higher it is, the more expensive the borrowed funds are for credit institutions. This directly affects their policy in lending and servicing deposits for individuals and legal entities.
The Central Bank of the Russian Federation always sets a specific key rate, which is valid until a new one is announced. But this does not mean that all commercial banks take loans from the Central Bank at the same interest rate. If we expand the concept, then the KS is:
the minimum interest rate at which credit institutions can borrow funds from the Bank of Russia;
the maximum percentage at which banks can keep their own funds in the Central Bank.