Belarus’ refinancing rate down to 30% p.a.

MINSK, 12 September (BelTA) - Belarus reduced its main interest rate to 30% per annum on 12 September. The decision is stipulated in Resolution No. 462 of the Board of the National Bank of Belarus as of 7 September 2012, BelTA learnt from the information and public relations department of the National Bank.

"Earlier in 2012 the inflation was within the yearly projections against the background of the country’s stable economic situation. This allowed for a gradual reduction of the key rate," the National Bank noted. A tough monetary policy should be pursued in order to continue curbing the inflation, which creates prerequisites for the reduction of the refinancing rate.

In this regard the National Bank of Belarus will make sure that deposits in the Belarusian rubles are much more attractive than foreign currency ones in terms of profitability.

Last time the central bank reduced the refinancing rate was from 31% to 30.5% on 15 August. The current reduction is the eighth this year. The main interest rate has been reduced by 15% over the period, from 45% to 30% per annum. In 2011 it rose 12 times.

The National Bank projects the country’s main interest rate at 20-23% p.a. and its headline inflation at 19-22% by the end of 2012.