MINSK, 7 March (BelTA) – The National Bank of the Republic of Belarus (NBRB) will reduce the refinancing rate from 16% to 15% per annum on 15 March, BelTA learned from the NBRB Information and PR Office.
On 15 March the National Bank will reduce the interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks was reduced from 20% to 18% per annum.
The National Bank said that this decision was possible thanks to the slowdown in inflation and also the positive trends in the currency and deposit markets. “Inflation continues to decline, and its slowdown comes at a greater pace than it was previously expected,” the press release of the National Bank reads.
The inflation slowed down as the Belarusian ruble strengthened in January-February due to a significant excess of foreign currency demand over supply on the domestic currency market. The net foreign currency supply was formed mainly due to the sale of foreign currency by individuals. In the business segment the currency supply and demand were balanced.
The monetary factors continue to exert major influence on the inflation. The average broad money supply increased by 1% in February 2017 as against February 2016.
In the domestic deposit market, retail ruble-denominated deposits continue increasing.
“If inflation shows further decline and the positive trends in the foreign exchange and deposit markets persist, the National Bank will continue its policy towards reducing the interest rates in the coming months,” the National bank said.
This is the third time that Belarus' central bank has reduced the refinancing rate since the start of the year. On 18 January the rate was cut down from 18% to 17% per annum, on 15 February from 17% to 16% per annum.
