Subject. The article discusses the monetary policy of the Bank of Russia. Objectives. The study aims to describe the monetary policy of the Bank of Russia. Methods. The study draws on general scientific methods, primarily, the analysis and synthesis of data, and special economic and mathematical methods, like graphical methods of analysis. Results. The paper revealed the ability of the Bank of Russia to increase the volume of money in circulation while maintaining the balance of the ratio of broad money to money supply, and to ensure faster growth of liabilities included in the broad money supply relative to claims on other sectors. It found that the population keeps more funds in banks due to restrictions on withdrawal of capital and high interest rates on deposits, which, in turn, are associated with the transition of the Bank of Russia to the dominance of the key rate over inflation, and the shadow retention of the dominant positions of euro and US dollar relative to Chinese yuan. The shadow retention of the dominant positions of euro and US dollar by the Bank of Russia is associated with a combination of economic, political and financial factors. Conclusions. The characteristics of the monetary policy of the Bank of Russia will be useful for the government in developing the economic policy to protect national interests, as well as business analysts in forecasting changes in the economy.
Keywords: money supply, inflation, key rate, monetary policy, financial system
References:
Apostolakis G.N., Giannellis N. Monetary policy and uncertainty spillovers: Evidence from a wavelet and frequency connectedness analysis. International Review of Financial Analysis, 2024, vol. 95, Part C, 103513. DOI: 10.1016/j.irfa.2024.103513 EDN: OEVELB
Dräger L., Gründler K., Potrafke N. Political shocks and inflation expectations: Evidence from the 2022 Russian invasion of Ukraine. Journal of International Economics, 2025, vol. 153, 104029. DOI: 10.1016/j.jinteco.2024.104029 EDN: JCICHN
Duke O.O., Adenuga A.O., Olusegun T.S., Odu A.T. Russia-Ukraine war and monetary policy in Nigeria. Scientific African, 2024, vol. 23, e02079. DOI: 10.1016/j.sciaf.2024.e02079 EDN: BTCXEG
Caldara D., Iacoviello M. Measuring Geopolitical Risk. International Finance Discussion Papers (IFDP), 2022, no. 1222. DOI: 10.17016/IFDP.2018.1222r1 EDN: LHUUQL
Gong X., Xu J. Geopolitical risk and dynamic connectedness between commodity markets. Energy Economics, 2022, vol. 110, 106028. DOI: 10.1016/j.eneco.2022.106028 EDN: HWKBQG
Ivanovski K., Hailemariam A. Time-varying geopolitical risk and oil prices. International Review of Economics and Finance, 2022, vol. 77, pp. 206‒221. DOI: 10.1016/j.iref.2021.10.001 EDN: OIYRRI
Ono S. The effects of foreign exchange and monetary policies in Russia. Economic Systems, 2013, vol. 37, iss. 4, pp. 522‒541. DOI: 10.1016/j.ecosys.2013.03.003 EDN: SRINSF
Ono S. The effects of monetary policy in Russia: A factor-augmented VAR approach. Economic Systems, 2021, vol. 45, iss. 3, 100904. DOI: 10.1016/j.ecosys.2021.100904 EDN: IXEIGR
El-Shagi M., Tochkov K. Divisia monetary aggregates for Russia: Money demand, GDP nowcasting and the price puzzle. Economic Systems, 2022, vol. 46, iss. 4, 101054. DOI: 10.1016/j.ecosys.2022.101054 EDN: OJBNAJ
Korhonen I., Nuutilainen R. Breaking monetary policy rules in Russia. Russian Journal of Economics, 2017, vol. 3, iss. 4, pp. 366‒378. DOI: 10.1016/j.ruje.2017.12.004 EDN: ZWROZV
Taylor J.B. Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 1993, vol. 39, pp. 195‒214. DOI: 10.1016/0167-2231(93)90009-L
Orphanides A., Williams J.C. Robust monetary policy with imperfect knowledge. Journal of Monetary Economics, 2007, vol. 54, iss. 5, pp. 1406‒1435. DOI: 10.1016/j.jmoneco.2007.06.005
Mccallum B.T. Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy, 1988, vol. 29, pp. 173‒203. DOI: 10.1016/0167-2231(88)90011-5
Eremina E., Shi Y. Macroprudential policy in retail lending: Concept and results – a case study of the Bank of Russia. Procedia Computer Science, 2024, vol. 242, pp. 1331‒1338. DOI: 10.1016/j.procs.2024.08.130 EDN: RMFDDH
Tiunova M.G. [The Effects of Monetary Policy on the Russian Financial Market Behavior]. Daidzhest-Finansy, 2023, vol. 28, no. 2, pp. 179–199. (In Russ.) DOI: 10.24891/df.28.2.179 EDN: DNOMUT
Drager L., Lamla M.J., Pfajfar D. Are survey expectations theory-consistent? The role of central bank communication and news. European Economic Review, 2016, vol. 85, pp. 84‒111. DOI: 10.1016/j.euroecorev.2016.01.010
Crump R.K., Eusepi S., Tambalotti A., Topa G. Subjective intertemporal substitution. Journal of Monetary Economics, 2022, vol. 126, pp. 118‒133. DOI: 10.1016/j.jmoneco.2021.11.008 EDN: YWJYMS
Malmendier U., Pouzo D., Vanasco V. Investor experiences and financial market dynamics. Journal of Financial Economics, 2020, vol. 136, iss. 3, pp. 597‒622. DOI: 10.1016/j.jfineco.2019.11.002 EDN: WUHRBL
Coibion O., Gorodnichenko Yu., Kumar S., Pedemonte M. Inflation expectations as a policy tool? Journal of International Economics, 2020, vol. 124, 103297. DOI: 10.1016/j.jinteco.2020.103297 EDN: ENRNUY
Lamla M.J., Vinogradov D.V. Central bank announcements: Big news for little people? Journal of Monetary Economics, 2019, vol. 108, pp. 21‒38. DOI: 10.1016/j.jmoneco.2019.08.014 EDN: LWVWKO
