The Bank of Russia at an extraordinary meeting held on 15.08.2023 raised the key rate from 8.5% to 12.00%. This decision was made to reduce inflation and ensure price stability.

The Central Bank noted that in case of strengthening of pro-inflationary risks additional rate increase is possible. The next meeting of the Central Bank’s Board of Directors on the key rate is scheduled for September 15, 2023.

The key rate is also used in labor relations. It is used to determine the amount of compensation for late payment of wages, vacation pay, bonuses, sick pay and other amounts due to an employee (Article 236 of the Labor Code of the Russian Federation), as well as the material benefit of an employee from savings on interest (Article 212 of the Tax Code of the Russian Federation).