The refinancing rate (RR) is the annual interest rate that commercial banks must pay to the Central Bank for using borrowed funds. This definition is not just similar to the CR definition. Since 2016, their values are equal. RR is used not only in lending, but also in other areas:
in the accrual of penalties for non-payment of taxes and fees. The daily penalty amount is equal to 1/300 of the SR;
in calculating the tax base in situations where the taxpayer benefits from savings on interest;
in the payment of interest under loan agreements in which the amount of interest is not specified. In such a case, the SR applies.
An ordinary Russian does not need to learn two terms, since qatar mobile database in practice KS and SR mean the same thing. The difference is only in the bureaucratic language.
What does the key rate affect?
The KS is one of the main instruments of financial market regulation. Its increase and decrease are caused by specific processes and serve specific tasks. It affects five key indicators:
cost of lending. When the Central Bank increases the CC, this leads to more expensive loans. Credit institutions increase interest rates on loans, which makes them unattractive for companies and individuals. This reduces consumer demand and hinders business development, since entrepreneurs do not risk using borrowed funds in large volumes. Therefore, raising the CC is usually resorted to for a short period. One of the most important indications for this measure is the high indebtedness of the population and the risk of non-repayment of funds. When loans become more expensive, they are taken less, and the level of indebtedness gradually decreases;
attractiveness of deposits in national currency. Raising the KS leads to an increase in interest rates on deposits. As a result, depositors are more willing to convert foreign currency into rubles in order to receive a large income.