Monetary Policy Transmission in Russia: Channels and Their Estimation

This work is devoted to studying Monetary Policy Transmission in Russia: Channels and Their Estimation. The Monetary Policy Transmission is the key moment to achieving the goal of monetary policy - maintaining annual inflation close to 4%. ( Bank of Russia). Therefore, there must be a clear understanding how Bank`s of Russia monetary policy deсisions are transmitted and with what time lags have an impact on macro indicators. This paper estimates only current key rate decisions impact on macroeconomic indicators, without «Forward guidance» policy influence. The results of the study based on historical data from 2010-2023 show that in Russia the main channel of transmission of monetary policy is the Credit Channel, which shows a steady negative pressure on the inflation rate over the horizon of 4 months after the decision of the Central Bank of the Russian Federation (-2% of the initial value), as well as a cumulative decrease in production by 1.8% with a lag in 2 months from the initial indicator is the maximum impact.