Since August 15, the Central Bank has raised the key rate to 12% per annum
The Board of Directors of the Bank of Russia at an extraordinary meeting (the Central Bank announced its holding in its telegram channel) decided to raise the key rate by 350 basis points, to 12.00% per annum. This is the second rate increase in a month. The new rate is set from the day of the meeting - August 15. It should be noted that the Bank of Russia has long abandoned the practice of changing the rate "day-to-day" and, as a rule, sets a new amount on Friday with the condition that its application begins on Monday: the previous "instant" rate increase was on February 28, 2022, and before that - on December 16, 2014.
The decision was made in order to limit the risks to price stability. Inflationary pressure continues to increase. As of August 7, the annual inflation rate increased to 4.4%. At the same time, the current rate of price growth continues to accelerate. On average, over the past three months, the current seasonally adjusted growth was 7.6% year-on-year. The same indicator of core inflation increased to 7.1%.
The next meeting of the Board of Directors of the Central Bank, which will consider the issue of the level of the key rate, should be held on the previously scheduled date - September 15, 2023.
As usual, we remind you that the size of the key rate is important when charging customers and suppliers penalties for late fulfillment of obligations under the contract in accordance with Part 5 and Part 7 of Article 34 of Federal Law No. 44.
In addition, the key rate is applied when calculating:
- penalties for taxes, fees, contributions;
- compensation for delayed wages and other payments due to the employee;
- interest for the use of other people's money
Document: Information message of the Bank of Russia dated August 15, 2023