MINSK, 28 June (BelTA) – The refinancing rate will be reduced from 13% to 12% per annum as from 19 July, representatives of the Information and Public Relations Office of the National Bank of the Republic of Belarus (NBRB) told BelTA.
The NBRB Board has decided to reduce the refinancing rate from 13% to 12% per annum as from 19 July 2017, BelTA has been told. The interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks will be reduced from 15% to 14% per annum.
The decision was made as a result of the quarterly session of the NBRB Board, during which the state of affairs was evaluated and forecasts were made with regard to economy, foreign trade, and the money-and-credit sphere bearing in mind growing positive economic trends.
Inflation remains low. In June 2017 it will be close to 6.2% in year-on-year terms. Inflation is uniformly low across many commodity groups, which means the stability of its deceleration is growing stronger. The projections are confirmed by the dynamics of core inflation, which is estimated at about 5.3% in June in year-on-year terms.
These trends are expected to grow stronger thanks to a moderate growth rate of the money supply, positive changes in the balance of payments, and the stability of the currency market.
In June 2017 the increase in the broad money supply is expected to remain roughly the same — about 5% in year-on-year terms. The fact that the supply of foreign currency continues to exceed demand on the domestic market positively influences the level of the gold and foreign exchange reserves in addition to keeping the exchange rate of the Belarusian ruble stable. Inflation is expected to slow down in the next few months. Further reduction of interest rates on the market will be determined by the stability of decreasing inflation risks.
It will be the sixth time Belarus' central bank has reduced its refinancing rate this year. The refinancing rate went from 18% to 17% per annum on 18 January, from 17% to 16% on 15 February, from 16% to 15% on 15 March, from 15% to 14% on 19 April, and from 14% to 13% per annum on 14 June.
