On the Impact of Key Rate Dynamics on Inflation in the Russian Economy

The scientific discussion on the implementation of monetary policy by the national mega-regulator has not lost its relevance. Academic economists and practitioners discuss the problems of regulating inflation, the impact of various factors on it, as well as issues of effectiveness and possible scenarios. The article critically examines the issues related to the relationship between inflationary processes and the tools used by the regulator to conduct anti-inflation monetary policy. In recent years, there has been a trend of rising inflation in the national economy, where the Bank of Russia actively and regularly employs the sole instrument of monetary policy: the adjustment of the key interest rate, to reduce it. The issues of lowering inflation and the application of various tools and methods have become a scientific problem actively discussed by scholars and practitioners in scientific and practical publications. The imposed economic sanctions and the resolution of crucial geopolitical issues have exacerbated this problem. The article attempts to analyze the effectiveness of this instrument and justify the need for a broader range of economic means (tools) and methods to reduce price growth.