MINSK, 11 May (BelTA
) - The refinancing rate in Belarus will be cut down to 34% per annum on 16 May. Relevant resolution No.229 of 10 May 2012 was adopted by the Board of the National Bank, BelTA learnt from the information department of the National Bank of the Republic of Belarus (NBRB).
The bank’s committee for monetary policy took a decision to reduce the refinancing rate on permanently affordable liquidity support operations and bilateral operations from 60% to 55% per annum and the refinancing rate on permanently affordable liquidity withdrawal operations from 23% to 20% per annum.
According to the bank, the decision is based on this year’s positive trends and, first of all, on slowing inflation processes. In April 2012 the consumer price index in regard to goods and services made up 6.8% compared to December 2011. It meets the annual inflation projections at 19.22%.
The NBRB noted that a consistent increase in foreign trade surplus alongside with the efficient amount of foreign currency supply on the domestic currency market provides conditions for stable exchange rate of the Belarusian ruble and even strengthening of the national currency.
Despite the lowering of the interest rate, monetary conditions will remain stringent which is needed for maintaining the macroeconomic and financial stability in the country.
“The National Bank will continue to pursue a flexible interest rate policy, respond timely to trends in foreign trade, the real production sector and financial markets,” stressed the NBRB information department.