Interest rates and inflation at the present stage in Russia

Abstract

The subject of the study is the processes of interaction between interest rates and inflation in the domestic economy, contributing to changes in the quality of life of the population, business activity and the volume of investments of organizations. the purpose of the work is to establish a mechanism for increasing the efficiency of the interest rate and stabilizing inflation in the conditions of turbulence of the Russian economy. the study summarizes the processes of the relationship between the key rate of the Bank of Russia, bank interest rates and inflation; the reasons for the price increase have been identified, the current trends in the consumer price index, the dynamics of prices in the markets of goods and services, changes in the cost of housing have been identified, and the conditions for increasing the effectiveness of the interest rate in Russia have been established. Through a systematic and comprehensive analysis, the strengths and weaknesses of inflation targeting as a tool for stabilizing monetary relations under conditions of uncertainty in Russia are identified; the dependence of the growth of the consumer price index (inflation rate) on average annual interest rates is revealed. the conclusions are made that the strengthening of the role of the mega-regulator for regulating the interest rate and the inflation rate makes it possible to determine clear guidelines and quickly adapt to new macroeconomic conditions. the proposals to increase the efficiency of the interest rate and stabilize inflation within the framework of the implementation of a soft monetary policy are substantiated.