From July 29, the key rate was increased to 18% per annum
The Board of Directors of the Bank of Russia decided to increase the key rate by 200 basis points, to 18.00% per annum. This is the first rate increase this year.
Inflation has accelerated, and the growth of domestic demand continues to significantly outpace the ability to expand the supply of goods and services. The Bank of Russia will evaluate the feasibility of further increasing the key rate at its upcoming meetings. The inflation forecast for 2024 has been raised to 6.5-7.0%. Annual inflation is expected to decline to 4.0-4.5% in 2025 and remain close to 4% thereafter.
The next meeting of the Board of Directors of the Central Bank of the Russian Federation, at which the issue of the level of the key rate will be considered, is scheduled for September 13, 2024.
The size of the key rate is important when calculating penalties to customers and suppliers for late fulfillment of obligations under the contract in accordance with Part 5 and Part 7 of Article 34 of Law No. 44.
In addition, the key rate is applied when calculating:
- penalties for taxes, fees, contributions;
- compensation for delays in wages and other payments due to the employee;
- interest for the use of other people's funds and others.
Document: Information message from the Bank of Russia dated July 26, 2024.
Photo taken from https://ru.freepik.com/popular-photos.