NBRB to consider another key rate cut in mid September

MINSK, 13 September (BelTA) – The National Bank of the Republic of Belarus (NBRB) will consider a possibility for further reduction of the country’s main interest rate in mid September, NBRB head Nadezhda Yermakova told media on 12 September.

In her words, the date for further reduction of the refinancing rate will be known after inflation rates are analyzed in mid September. “If inflation goes down, the country’s key rate will be revised downward,” she said.

The central bank will stick to a gradual reduction of the refinancing rate. “Today with the rate at 30% and eight-month inflation at 14.6%, we still have room to cut the key interest rate. Yet, we are going to do it gradually,” Nadezhda Yermakova said.

As for 2013 plans, the NBRB head has noted that the main interest rate depends on inflation, and the key rate should be always higher than inflation. “Therefore, next year projections see inflation going down to 12%, with the refinancing rate being 2-5% higher than inflation,” Nadezhda Yermakova added.