Monetary Policy Department

The Monetary Policy Department is engaged in the elaboration and implementation of monetary policy, analyses its efficiency and ensures communication between the Bank of Russia and the state authorities of the Russian Federation on issues related to the establishment of monetary policy targets and the development and implementation of monetary policy. The priority area of the Monetary Policy Department’s activities encompasses the monitoring, analysis, modelling and forecasting of monetary and financial indicators, the balance of payments, and the situation in the Russian and global economies. Based on the comprehensive analysis of external and internal macroeconomic conditions, the Department works out suggestions for the Bank of Russia’s Board of Directors on the key rate and on the level of interest rates on the Bank of Russia’s operations, the required reserve ratios, and other monetary policy parameters. These suggestions are developed with the engagement of other divisions of the Bank of Russia’s head office and regional branches.

In order to manage money market rates, keeping them close to the key rate, the Monetary Policy Department analyses and forecasts banking sector liquidity. These data are the basis for suggestions prepared by the Department regarding the volume of the Bank of Russia’s liquidity-providing and absorbing operations. The Department assesses the efficiency of the usage of monetary policy instruments and prepares its suggestions on how to improve them.

The Monetary Policy Department is also engaged in theoretical and applied research in the area of monetary policy development and implementation, as well as macroeconomics, the monetary system, and financial markets. One of the areas of focus rapidly evolving in the Department covers regional economic analysis and the monitoring of businesses by the economic units of the Bank of Russia’s regional branches.

The Department is actively engaged in the Bank of Russia’s information policy, drafting materials to explain the rationale behind monetary policy decisions and their expected results to the general public. The Monetary Policy Department is responsible for preparing the programme and reporting documents of the Bank of Russia, which include the Monetary Policy Guidelines, the Bank of Russia’s Annual Report, the Monetary Policy Report, and other information and analytical materials published on the Bank of Russia website.