Rates reshuffle: Russia’s central bank changes keys to better transparency — RT Business

Rates reshuffle: Russia’s central bank changes keys to better transparency — RT Business:

"Russia’s main lender has made the price it charges other country’s banks for one-week borrowing the key benchmark for the market. Being at 5.5% it is by far a better reflection of Russia’s inflation than the previous anchor – the 8.25% refinancing rate.

As part of the effort by the Central Bank of Russia (CBR) to cap inflation and make the country’s banking more consistent, the regulator has shifted the focuses for other market players.

From Monday on the cost of one week borrowing, rather than for a day, officially becomes the benchmark for other banks. This puts the previous official anchor – the refinancing rate – in the middle distance. The key CBR rate is used by the banks to decide on their own interest rates policy, which ultimately translates into the cost of borrowing for both companies and individuals."

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