Financial Stability and Economic Development: Setting Priorities

The subject of the study is the influence of monetary policy on the dynamics of the country’s economic development. The purpose of the paper is to establish causal relationships between the key interest rate set by the regulator and the reaction of non-financial companies and banks to it. The methodological basis of the study was the theory of economic growth and economic policy, empirical-statistical and qualitative analysis. As a result of the study, while the regulator successfully solves the problem of ensuring the banking sector’s stability, its actions to support the growth of the Russian economy are not always effective. It is concluded that it is expedient to set the key rate at such a level that it would be aimed at those who are able to solve the problem of inflation, and would not have an indiscriminate impact on all economic actors, including those that ensure the production capacity increase and the labor productivity growth in order to balance product supply with demand.