BANK OF RUSSIA'S MONETARY POLICY AND PROSPECTS FOR PRICE STABILITY

Abstract

Impact of key rate size on price stability of country's economy is the main objective of monetary policy of Bank of Russia. This impact may have a positive nature, but most of associated challenges for the lined mechanism is significant test, affecting the parameters of country's economic development. As any mechanism, monetary policy now needs to develop measures related to creation of optimal and transparent conditions for its functioning. Article analyzes the dynamics of inflation in Russia and in other economies of different countries and key rate. Analytical, quantitative and comparative methods were used in research. As a result, significant period from November 2020 to September 2021, when real interest rate in Russian economy had a negative value, was revealed. Study revealed a real lag in changing the key rate to maintain price stability for 6 months. According to the results of analysis, number of conclusions were made about elaboration and forecasting of monetary policy by Bank of Russia and the main conclusion was made about the need for a tighter monetary policy, in order to stabilize the country's economy and achieve the main goal — price stability.