MINSK, 19 April (BelTA) – The refinancing rate of the National Bank of the Republic of Belarus (NBRB) was reduced from 15% to 14% per annum on 19 April, BelTA learned from the NBRB Information and PR Office.
The NBRB Board took a decision to reduce the refinancing rate from 15% to 14%, the interest rates on standing and bilateral transactions designed to maintain banks' current liquidity from 18% to 17% per annum, and also the rates on standing liquidity absorption transactions from 10% to 9% per annum.
The central bank decided to reduce the refinancing rate after a review of the current status of the monetary policy, the economy and the forecast for 2017. “Inflation continues to decline, and its slowdown comes at a greater pace than it was previously expected. This tendency is mainly attributed to a weaker inflation pressure from fundamental and monetary factors,” the National Bank said.
The money supply growth rate is moderate. In March 2017, the average broad monetary base increased by 2.6% as against March 2016 (excluding the change in ruble equivalent of the foreign exchange component of money supply). The share of the national currency in the structure of money supply is gradually increasing, which reflects the dedollarization processes in the economy.
The net foreign currency supply trend persists in the domestic currency market, which ensures stability of the Belarusian ruble and enables the National Bank to buy foreign currency to replenish gold and forex reserves and repay the government foreign currency liabilities.
Taking into account the inflation and economic development projections, the National Bank does not rule out the possibility of further reduction of the interest rates this year.
This is the fourth time the refinancing rate has been revised downward since the start of 2017. Previously, it was reduced from 18% to 17% on 18 January, from 17% to 16% on 15 February, and from 16% to 15% on 15 March.
