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NBRB sees ways to cut key interest rate in near future

MINSK, 2 April (BelTA) – The National Bank of the Republic of Belarus (NBRB) sees ways to reduce the country’s main interest rate in the near future, Chairwoman of the Board of the National Bank of the Republic of Belarus Nadezhda Yermakova told media on 2 April.

Commenting on the statements of head of the IMF mission in Belarus David Hofman who said that the last reduction of Belarus’ key rate from 30% to 28.5% in March was premature and the National Bank should think of a possible increase in the interest rates, Nadezhda Yermakova noted: “We should hear out others’ opinion but have our own head of shoulders and take up decisions that may benefit us.”

“I believe the key interest rate has a prospect for going down, taking into account inflation rate over the last 20 days of March,” the NBRB head said. The decision will be taken as soon as March inflation figures are published. “According to our estimates, it will be possible to cut the country’s key interest rate further,” Nadezhda Yermakova added. She did not commented on how much the main interest rate may go down.

Belarus’ key interest rate went down from 30% to 28.5% p.a. on 13 March 2013. The last time it was revised before it was in September 2012. The main interest rate is projected to reach 13-15% p.a. in 2013. With this, as the bank numerously repeated, the rate will fully depend on the macroeconomic situation in the country. First of all, it pertains to foreign trade, the currency market, and inflation.