Home  Journals  Economic Analysis: Theory and Practice  2(557) - 2025 February

Reasons for interest rate rise in the Russian economy

Received: 29 August 2024

Accepted: 2 October 2024

Available online: 14 February 2025

Subject Heading: ANALYSIS OF FINANCIAL CAPITAL

JEL Classification: E40, E43, E47, E49

Pages: 193-208

https://doi.org/10.24891/ea.24.2.193

Subject. The article investigates reasons for interest rate increase in the Russian economy.
Objectives. The study aims to determine reasons for rising interest rates in the Russian economy.
Methods. The research methodology draws on the application of general scientific methods, primarily, the analysis and synthesis of data, and special economic and mathematical methods, in particular, correlation and regression analysis.
Results. The paper identifies the need to eliminate the possibility of credit and other financial institutions to influence the type of interest rate, shows the transition to a higher volume of standing overnight deposits and one-week deposit auctions, notes that it is required to return to negative values of State and municipal securities minus debt securities of residents (except for State and municipal securities) with high volatility exceeding the volume of State and municipal securities over debt securities of residents.
Conclusions. The identified reasons for interest rates growth in the Russian economy indicate to the expert community their marginal values.

Keywords: stock, overnight deposit, debt securities, interest rate

References:

1. Meshkova E.I. [Modern trends and problems of interest rate policy of banks]. Finansovye rynki i banki = Financial Markets and Banks, 2023, no. 6, pp. 112‒116. URL: Link (In Russ.)
2. Klose J. Empirical effects of sanctions and support measures on stock prices and exchange rates in the Russia–Ukraine war. Global Finance Journal, 2024, vol. 59, no. 100925. URL: Link
3. Benchimol J., Palumbo L. Sanctions and Russian online prices. Journal of Economic Behavior & Organization, 2024, vol. 225, pp. 483‒521. URL: Link
4. Gainetdinova A., Sohag K., Samargandi N. Russian Currency's external shocks and domestic policy effectiveness amid geopolitical tensions. Borsa Istanbul Review, 2024, vol. 24, iss. 2, pp. 406‒423. URL: Link
5. Vindushev A.D., Tselkovskaya A.A. [The modern global credit market: Risks and trends]. Ekonomika i biznes: teoriya i praktika = Economy and Business: Theory and Practice, 2024, no. 3-1, pp. 70‒73. URL: Link (In Russ.)
6. Ten'kovskaya L.I. [Analysis of consumer inflation in Russia]. Vestnik Udmurtskogo universiteta. Seriya: Ekonomika i pravo = Bulletin of Udmurt University. Series Economics and Law, 2024, vol. 34, no. 1, pp. 90‒99. URL: Link (In Russ.)
7. Andryushin S.A. [Interest rate policy of the Bank of Russia in conditions of fiscally-dominant regime: Risks and prospects]. Zhurnal Novoi ekonomicheskoi assotsiatsii = Journal of the New Economic Association, 2024, no. 1, pp. 211‒219. (In Russ.) URL: Link
8. Andryushin S.A., Sviridov A.P. [Bank of Russia in 2022: Performance results, expected risks and anti-crisis measures]. Vestnik Instituta ekonomiki Rossiiskoi akademii nauk = The Bulletin of the Institute of Economics of the Russian Academy of Sciences, 2023, no. 2, pp. 7‒33. URL: Link (In Russ.)
9. Bhandari P., Frankel J. Nominal GDP Targeting for Developing Countries. Research in Economics, 2017, vol. 71, iss. 3, pp. 491–506. URL: Link
10. Burganov R.A., Ryzhova E.A. [Problems of lending to the population by financial organizations in a rapidly changing economy]. Finansovyi menedzhment = Financial Management, 2023, no. 1, pp. 78‒83. URL: Link (In Russ.)
11. Savinov O.G., Ananchenko P.A., Safonova I.P. [Lending to individuals: Overdue debts, debt restructuring and bankruptcy]. Ekonomika i predprinimatel'stvo = Economy and Entrepreneurship, 2023, no. 1, pp. 1063‒1066. (In Russ.) URL: Link
12. Grishchenko V.O., Sinyakov A.A. [Demography and equilibrium interest rates: Competing approaches and evidence from Russia]. Zhurnal Novoi ekonomicheskoi assotsiatsii = Journal of the New Economic Association, 2024, no. 1, pp. 229‒239. (In Russ.) URL: Link
13. Gusakova E.O. [Analysis of the dynamics of the mortgage securities market in the context of changes in interest rates]. Biznes i obshchestvo, 2024, no. 2. (In Russ.) URL: Link
14. Lapaev D.N., Ramazanov C.C. [Interest channel and innovative mechanisms of the Bank of Russia]. Ekonomicheskaya bezopasnost' = Economic Security, 2024, vol. 7, no. 2, pp. 247‒264. (In Russ.) URL: Link
15. Zolotova E.A., Apkhudova A.T., Nakhmedy E.A. et al. [Differentiation of interest rates on deposits for different categories of depositers from the position of a commercial bank]. Vestnik Severo-Kavkazskogo federal'nogo universiteta = Newsletter of North-Caucasus Federal University, 2024, no. 1, pp. 88‒97. (In Russ.) URL: Link
16. L'vova M.I., Yuzvovich L.I. [Target model for effective management of interest expenses in a commercial bank]. Finansovye rynki i banki = Financial Markets and Banks, 2024, no. 4, pp. 303‒314. URL: Link (In Russ.)
17. Elkin S.E., Tarasova T.N. [Financial covenants as a company’s risk management tool]. Vestnik Sibirskogo instituta biznesa i informatsionnykh tekhnologii = Herald of Siberian Institute of Business and Information Technologies, 2024, vol. 13, no. 2, pp. 74‒77. URL: Link (In Russ.)
18. Nadaraia L.B., Rogankov M.V. [Forecasting interest rates in the Russian banking system]. Biznes i obshchestvo, 2023, no. 2. (In Russ.) URL: Link

View all articles of issue

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 24, Iss. 5 May 2025

Archive