MINSK, 31 January (BelTA) – The refinancing rate will be cut down to 10.5% on 14 February, BelTA learned from the NBRB Information and PR Office.
The Board of the National Bank made this decision taking into account the current and projected rate of inflation, the continuing economic recovery and favorable trends in foreign markets.
In 2017 the inflation decreased to 4.6% from 10.6% in 2016. The core inflation, which fell to 2.5% in 2017 (10% in 2016), made a substantial contribution to the slowdown of the consumer price growth. It is predicted that in the coming months the consumer price growth will near 5% in annual terms. In the light of the decision to reduce the refinancing rate, the monetary conditions will keep the inflation within the projected parameters in 2018.
The factors on the part of demand such as the restoration of the economic growth and the increase in the spending on final consumption in the wake of rising incomes are near the equilibrium and do not exert pressure on inflation. Lower inflation in the countries - major trading partners of Belarus restrict the domestic price growth. The risks of accelerating inflation from external factors are assessed as low.
The average broad money dynamics is within the trajectory corresponding to the target range for 2018. Its growth is expected to accelerate slightly in the coming months on the heels of the low base effect of the previous year.
“Further decisions regarding the interest rates will depend on the inflation, the development of the situation in the economy and monetary sphere and the likelihood and scale of inflation risks constraining the achievement of the medium-term inflation target,” NBRB Information and PR Office said.
