What is the «key rate» You've probably often heard that there | SVIATOSLAV GUSEV

What is the «key rate»

You've probably often heard that there's a key rate that goes up and down and everyone talks about it. Do you know what it is?

The key rate is the interest rate set by the central bank to regulate the money supply in the economy. It is one of the main instruments of monetary policy and affects lending and inflation.

Just in case: monetary policy is a set of measures that a central bank takes to maintain price stability in order to promote a sustainable and balanced economy.

The term is complicated, it's true. I'll talk a little more about it later, but in the meantime, refresh your memory on previous definitions from economics.