Bank of Russia’s Monetary Policy Review
The Monetary Policy Review (MPR) is a comprehensive analysis of the effectiveness of the Bank of Russia’s monetary policy in a changing environment. Based on the findings of this analysis, the Bank of Russia makes informed decisions about maintaining or adjusting its monetary policy parameters.
The MPR project was launched to assess the conditions for implementing monetary policy, evaluate the outcomes achieved during the period of inflation targeting, and determine how well these outcomes align with the primary statutory objective of monetary policy which is to protect and ensure the stability of the ruble by maintaining price stability, thus also supporting balanced and sustainable economic growth. The Bank of Russia remains firmly committed to the inflation targeting regime and its price stability mandate established by law.
The research underpinning the MPR is conducted by Bank of Russia staff.
Transparency in communication is a prerequisite for public trust in monetary policy, which in turn supports its effective implementation. The Bank of Russia shares the results of its analytical work with the expert community, financial market participants, businesses, public organisations, and government authorities, including those in Russia’s regions. Feedback on the MPR is welcomed at: odkp@cbr.ru.
MPR 2021–2023
In
Bank of Russia experts conducted research across six work streams.
Research and Analytical Notes:
- Work stream 1: Inflation target format
- Work stream 2: Operational framework of monetary policy
- Work stream 3: Retrospective assessment of the effectiveness of monetary policy
- Work stream 4: Communication as a monetary policy instrument
- Work stream 5: Monetary policy and financial stability
- Work stream 6: New challenges to monetary policy
The MPR Consultation Paper summarises the key findings and presents policy recommendations based on this research.
Public consultations
Meetings with experts
In March–April 2023, the Bank of Russia held meetings with analysts and experts in Moscow to discuss the preliminary findings from all six work streams. The attendees included dozens of representatives from banks, other professional financial market participants, research institutes, and universities. Bank of Russia specialists presented their research reports and analytical notes.
Regional level consultations
In May—June 2023, The Bank of Russia held a series of public consultations across all Russian regions with representatives of public organisations, businesses, academia, and government authorities. These sessions were hosted by the Bank of Russia’s Main Branches in Moscow, Nizhny Novgorod, Saint Petersburg, Krasnodar, Yekaterinburg, Novosibirsk, and Vladivostok. Other regions related to the Main Branches joined the meetings online. These open dialogues provided deeper insight into how inflation and monetary policy are perceived by society.
Summaries of the feedback and the Bank of Russia’s responses to the discussion points are available in the report Public Consultations in Russian Regions (in Russian only).
Presentation at the Financial Congress
The MPR research findings were also presented at the Bank of Russia’s Financial Congress in Saint Petersburg on
The MPR was also a key topic during a one-day lecture series at the 4th Summer Macroeconomic School for students and faculty on 4 July 2023 prior to the Congress.
Key findings of the MPR
The analysis confirms the effectiveness of the inflation targeting regime in improving public welfare and supporting economic resilience during crises. The Bank of Russia’s monetary policy operational framework aligns with global best practices while taking into account the specific features of Russia’s economy, banking sector, and money market.
The current approach to implementing monetary and financial stability policies has proven effective in mitigating and preventing financial risks and ensuring the stable functioning of the financial system. The MPR also highlights increased transparency in monetary policy over the inflation targeting period, which has strengthened public trust. The Bank of Russia’s communication efforts were particularly instrumental in calming financial markets during periods of turbulence.
The findings suggest that the current monetary policy parameters are generally consistent with economic developments. Nevertheless, there may be scope to adjust certain parameters. In particular, conditions in the Russian economy support the possibility of lowering the inflation target in the future. The Bank of Russia will consider this move once inflation slows down and stabilises close to 4%.
Continuous improvement in monetary policy communication is also essential, particularly in view of the rapidly evolving media landscape.
The Bank of Russia incorporated the results of the