Analyzing the impact of the key rate on the Russian economy

Subject. The article is devoted to the key rate in the Russian economy. Objectives. The purpose is to determine the impact of the key rate of the Bank of Russia on the economy. Methods. The study employs general scientific methods, primarily data analysis and synthesis, and special economic and mathematical methods, like correlation and regression analysis. Results. The study revealed the key rate volatility and a two-fold excess of the key rate over inflation during the period of increasing risks in the economy at the necessary parity for inflation targeting. The paper shows the target growth of the maximum interest rate (on ruble-denominated deposits) in ten credit institutions attracting the largest volume of deposits from individuals. At the same time, the weighted average interest rates on loans provided by credit institutions to individuals in rubles, in some cases, are twice the key rate. The paper also shows a transition to a higher level of funds of credit institutions in deposit accounts with the Bank of Russia, and a growth in the ratio of debt securities to quoted shares of Russian issuers against the background of acceleration of the first and slowdown of the second, as well as a weak growth of the Federal bond market. Conclusions. The revealed impact of the Bank of Russia's key rate on the economy enables the expert community to correctly determine the critical balance between debt securities and quoted shares of Russian issuers.