Why does the key Usually, large entrepreneurs iraq telegram data complain about high rates the most.
— Because the key rate has a greater impact on rates on short-term deposits and loans. And supply, the growth of the economy’s production capabilities depends to a greater extent on long-term rates. Investment projects are usually long-term. What is more important for an enterprise is not what the rate is today, but what it will be over a long period of time while it is paying off an investment loan. A moderate level of rates over a long horizon is possible only with consistently low inflation. It also helps to better predict the economic efficiency of investment decisions.
— How does the Central Bank decide what key rate to set?
— In the economy, everything is interconnected. And inflation is the result of all the factors that influence the economy. Therefore, when deciding on the key rate, we take a comprehensive look at the economy. And at what is happening with supply and demand, and at external conditions (the export potential of our economy, the availability of imports, prices on world commodity markets, interest rates in other economies), and at rates and lending growth, and at budget policy. And, of course, at inflation itself and inflation expectations.
After all, the decisions of people and businesses
about whether to save or spend money, take out a loan or wait are ultimately influenced by what kind of inflation they expect in the future. And how to maximize sem roi with conversion optimization [the business case] how it relates to bank rates and bond yields. Based on actual data and various scenarios, we consider forecast calculations based on various models. In each scenario, we can find a key rate trajectory that will allow inflation to return to our long-term goal of 4% per annum. Following the discussion, the ao lists board of directors selects the most likely scenario, formulates a baseline forecast and determines the level of the key rate.
— When will it be possible to return inflation to 4% (this is one of the main goals of the Central Bank)? Many people are skeptical about this figure…
— According to our calculations, we will approach this figure by the end of this year.
