Interest rates on Bank of Russia operations
On 1 June 2018, the Bank of Russia Board of Directors decided to set interest rates on Bank of Russia operations with credit institutions as key rate spreads. This decision defines a general approach to rate-setting on Bank of Russia operations depending on the level of the key rate as the main monetary policy instrument.
The said approach also covers rate-setting on Bank of Russia specialised refinancing facilities.
This decision anchors current interest rate spreads on Bank of Russia operations to the key rate.
Effective 4 June 2018, interest rates on Bank of Russia monetary policy instruments are as follows:
| Purpose | Type of instrument | Instrument | Term | Interest rate |
|---|---|---|---|---|
| Liquidity provision | Standing facilities | Loans secured by non-marketable assets or guarantees | from 2 to 549 days | Bank of Russia key rate plus 1.75 pp |
| Overnight loans; FX swaps (ruble leg); Lombard loans; repos | 1 day | Bank of Russia key rate plus 1.00 pp | ||
| Loans secured by non-marketable assets or guarantees | ||||
| Open market operations | Auctions to provide loans secured by non-marketable assets | from 1 to 3 weeks, 3 months, 18 months | Bank of Russia key rate plus 0.25 pp | |
| Lombard loan auctions | 36 months | |||
| Repo auctions | 1 week, from 1 to 6 days | Bank of Russia key rate | ||
| Liquidity absorption | Open market operations | Deposit auctions | ||
| Standing facilities | Deposit auctions | 1 day | Bank of Russia key rate less 1.00 pp |
Effective 4 June 2018, interest rates on Bank of Russia specialised refinancing instruments are as follows:
| Name of instrument | Interest rate |
|---|---|
| Bank of Russia loans secured by the guarantees of JSC Russian Small and Medium Business Corporation | the lower of the two values: 6.50% p.a. or the Bank of Russia key rate |
| Bank of Russia loans secured by the pledge of receivables on loan agreements entered by JSC SME Bank with credit institutions or microfinance organisations and which are targeted for lending to small and medium enterprises, and also with leasing companies, which are targeted for leasing property to small and medium enterprises | |
| Bank of Russia loans secured by the pledge of receivables on loan agreements secured by the insurance contracts of OJSC EXIAR | |
| Bank of Russia loans secured by the pledge of receivables on loans extended to leasing companies | |
| Bank of Russia loans secured by the pledge of receivables on loans issued to fund investment projects or by the pledge of bonds placed to fund investment projects and included in the Bank of Russia Lombard List | the lower of the two values: 9.00% p.a. or the Bank of Russia key rate less 1.00 pp. |
| Bank of Russia loans secured by mortgages issued under the Military Mortgage Programme | Bank of Russia key rate |
Subsequently, interest rates on Bank of Russia operations will be revised in line with changes in the Bank of Russia key rate according to the established spreads.
Press releases on key rate revisions will not highlight interest rates on Bank of Russia operations, starting from the press release in the follow-up to the Board of Director’s meeting to be held on 15 June 2018. Accordingly, no press releases will be published on the revisions of interest rates on Bank of Russia specialised refinancing instruments. Individual press releases on the revisions of interest rates on Bank of Russia monetary policy instruments will be published only if the rate-setting approach changes.
Interest rates on Bank of Russia operations will be published on the Bank of Russia website in the section Interest rates on Bank of Russia operations. Additionally, relevant interest rates on monetary policy operations will continue to be posted on main page of the Bank of Russia website in the section ‘Parameters of Bank of Russia operations’.
The reference to the Press Service is mandatory if you intend to use this material.