Template-Type: ReDIF-Paper 1.0
Author-Name: Bozhechkova Alexandra
Author-Name-First: Alexandra
Author-Name-Last: Bozhechkova
Author-Workplace-Name: Gaidar Institute for Economic Policy
Author-Name: Trunin Pavel
Author-Name-First: Pavel
Author-Name-Last: Trunin
Author-Workplace-Name: Gaidar Institute for Economic Policy
Title: Russia’s Monetary Policy in 2021
Abstract: In 2021, the rapid acceleration of the rate of inflation and overshooting by the actual inflation of the RF Central Bank’s target were the key challenges to the monetary policy following a fast recovery of demand amid limited capacities to increase supply of numerous goods and the easing of the monetary and fiscal policies. As a result, the RF Central Bank has switched over to the tightening of the monetary policy and raised the key interest rate at all its meetings of the Board of Directors since March 2021. In 2021, the key interest rate picked up by 4.25 p.p. from 4.25% annually to 8.5% annually, a record-high since 2017. It is noteworthy that such a lengthy phase of tightening of the monetary policy was observed for the first time since 2014.
Classification-JEL: E31, E43, E44, E51, E52, E58
Keywords: Russian economy, monetary policy, money market, exchange rate, inflation, balance of payments, fiscal policy
Creation-Date: 2022
Revision-Date: 2022
Length: 18 pages
File-URL: https://www.iep.ru/files/RePEc/gai/ppaper/ppaper-2022-1195.pdf
File-Format: application/pdf
File-Function: Revised Version, 2022
Handle: RePEc:gai:ppaper:ppaper-2022-1195