Changes in the key rate of the Central Bank were proposed to be coordinated with the State Duma

Changes in the key rate of the Central Bank are proposed to be coordinated with the State Duma. As "Izvestia" found out, such a bill will be submitted to the parliament on February 13 by Duma vice-speaker Alexander Babakov, deputy Nikolai Novichkov and the head of the faction "Just Russia - For Truth" Sergei Mironov.

"The draft federal law is aimed at increasing the stability and predictability of the monetary and credit policy of the Russian Federation. In modern economic conditions, sharp changes in the key interest rate by the Bank of Russia can create significant pressure on the monetary system, causing shock effects for the economy. This is especially noticeable in such sectors as small and medium-sized businesses, mortgage lending and the consumer market, which are most sensitive to changes in the cost of borrowing," reads the explanatory note to the bill, which was read by Izvestia.

It notes that the need for the Bank of Russia to coordinate (get approval from the State Duma) sharp changes in the interest rate will reduce the likelihood of excessive impact of negative decisions on the economy.

"The proposed initiative will create an additional mechanism of accountability for the actions of the Bank of Russia in order to take into account the opinions of various groups of participants in the economic system. At the same time, coordination (approval) will be required only for significant changes exceeding the established threshold, which provides a balance between the promptness of regulation and the need to prevent undue pressure on the market, including preserving the principle of independence of the Bank of Russia in the implementation of monetary powers," the document informs.

As explained to "Izvestia" Sergey Mironov, the bill provides two conditions under which a change in the key rate of the Central Bank must be agreed with the State Duma and formalized by a resolution of the chamber: if the rate increases by more than 100 basis points, or when its growth exceeds one and a half times the value of inflation for the previous year.

"Our initiative is caused by the Central Bank's actions to raise the rate, which led to a spike in inflation and a slowdown in economic growth. This is a mechanism to protect the economy from shock effects, which are particularly painful for small and medium-sized businesses, for mortgages and investments, for the availability of credit resources for the population and enterprises," the deputy emphasized.

Postpone to save: market forecasts key 21% at Central Bank meeting in February

Why the risks of raising it in other meetings in 2025 still remain

Earlier, January 13, former Deputy Minister of Economy, Doctor of Economic Sciences Alexei Vedev explained the reasons for the reduction of deposit rates by banks. According to him, on average, deposits have become less favorable by 0.5% due to the fact that the Central Bank (CB) before the new year left the key rate unchanged. Therefore, the banks' expectations about the appreciation of money did not come true.

The Bank of Russia kept the key rate at 21% per annum in December 2024. The next rate meeting is scheduled for February 14. Most experts polled by Izvestia believe that the Central Bank will keep the rate at the same level.