Economic challenges: how does the increase in the key rate of the Central Bank of the Russian Federation change the rules of the game for businesses and citizens?

Over the past few years, the Russian economy has been exposed to many challenges, which include fluctuations in inflation and the exchange rate, as well as all possible sanctions from Western countries, and accordingly, a thorough analysis of the consequences of raising the key rate of the Central Bank of Russia (CBR) is relevant in the process of studying the impact of monetary policy on various sectors of the economy. The purpose of this study is to identify the key factors contributing to an increase in the key rate, and is aimed at assessing the impact of this growth on the business environment and the quality of life of society as a whole. To achieve this goal, it is necessary to consider the consequences of an increase in the rate for small and medium-sized enterprises, as well as for consumer lending, with regard to the financial well-being of the population. The results of this analysis indicate that the positive dynamics of the key rate leads to an increase in the cost of loans, and consequently a decrease in the availability of borrowed funds and a reduction in consumer demand. Such consequences create additional difficulties for the business, leading to a revision of the financial and investment management strategy for the latter. This means that it is important not only to analyze the consequences, but also to offer recommendations for adapting to new conditions, and understanding these processes can become the basis for developing more effective solutions both at the level of an individual business and at the level of public policy. Thus, this study is aimed at updating issues related to changes in monetary policy and helping various economic participants adapt more quickly to new realities.