meta_id 3103538

On 27 April 2026, the Bank of Russia announced updates to its approach for conducting fine-tuning auctions, effective from 13 May 2026, the first day of the May required reserve averaging period. The adjustment aims to enhance the efficiency of the Bank of Russia's monetary policy operational procedure and reduce the average deviation of money market rates from the key rate. Under the revised approach, the Bank of Russia will consider both the banking sector's liquidity requirements and the observed deviation of RUONIA (Russian Overnight Index Average) from the key rate when determining fine-tuning auction frequency. Where the spread between RUONIA and the key rate is steady and considerable, fine-tuning auctions may be held more frequently. However, as banks adapt to the new approach and their expectations regarding future RUONIA dynamics and key rate levels converge, the need for these operations is expected to decline. For fine-tuning deposit auctions, the Bank of Russia will set limits based on the total amount of excess liquidity in banks' accounts with the central bank. On the final day of each averaging period, when the required reserve averaging mechanism cannot fully offset temporary imbalances between liquidity demand and supply, the Bank of Russia will continue conducting fine-tuning auctions to limit money market rate fluctuations, consistent with existing practice. The changes apply to all credit institutions participating in the Bank of Russia's fine-tuning operations.