Monetary policy of the Bank of Russia

Subject. The article discusses the monetary policy of the Bank of Russia. Objectives. The study aims to describe the monetary policy of the Bank of Russia. Methods. The study draws on general scientific methods, primarily, the analysis and synthesis of data, and special economic and mathematical methods, like graphical methods of analysis. Results. The paper revealed the ability of the Bank of Russia to increase the volume of money in circulation while maintaining the balance of the ratio of broad money to money supply, and to ensure faster growth of liabilities included in the broad money supply relative to claims on other sectors. It found that the population keeps more funds in banks due to restrictions on withdrawal of capital and high interest rates on deposits, which, in turn, are associated with the transition of the Bank of Russia to the dominance of the key rate over inflation, and the shadow retention of the dominant positions of euro and US dollar relative to Chinese yuan. The shadow retention of the dominant positions of euro and US dollar by the Bank of Russia is associated with a combination of economic, political and financial factors. Conclusions. The characteristics of the monetary policy of the Bank of Russia will be useful for the government in developing the economic policy to protect national interests, as well as business analysts in forecasting changes in the economy.