From 1 January in the acts of the government to use the key rate of the Central Bank

Moscow. December 10. Prime Minister Dmitry Medvedev signed a decree on the application of all government regulations from 1 January 2016 key rate of the Central Bank instead of refinancing.

“I signed the document, which concerns also seems to be of such a technical, but nonetheless important. From January 1 next year in all government documents having installed the refinancing rate of the Central Bank, will be used the key rate of the Bank of Russia, except cases when this is directly provided by the law of the Russian Federation. Today, the key rate is the main indicator of monetary policy in the country, so such a decision, and we talked about him, in various meetings, consulted with the Central Bank, is quite natural. Would be guided by that,” said Medvedev.

The corresponding decree published on the government website. The report notes that the adopted measure is due to the changing role of the refinancing rate in the system tools of the Bank of Russia, which from September 13, 2013 introduced as the main indicator of the monetary policy key rate. Prior to this, the concept of key rate in the Russian legislation was not used.

In the fall of 2013 the CBR decided to change the system of rates, as a result became the key one-week repo rate and the refinancing rate was indicative. Then the key rate was 5.5% per annum and the refinancing rate to 8.25%. Now key rate is 11% per annum (in December last year it had soared to 17%), while the refinancing rate remained at the level of 8.25%. Moreover, in some official documents it appears the refinancing rate.

The Bank of Russia promised by January 1, 2016 to adjust the refinancing rate to the key rate, however, still a significant gap remains.

It was also reported that the Ministry of Finance of the Russian Federation prepared amendments to the Tax code to use the key rate of the Bank of Russia’s refinancing rate instead.