09.07.2013
NBRB unwilling to reduce refinancing rate in July
MINSK, 9 July (BelTA) – The National Bank of the Republic of Belarus does not plan to reduce the refinancing rate in July despite forecasts placing the inflation rate at about 0.6% in June, Chairwoman of the Board of the National Bank of the Republic of Belarus (NBRB) Nadezhda Yermakova told BelTA.
A decision on the refinancing rate will be considered soon, remarked the official. “I believe that the refinancing rate should not be moved for now in July,” she said. The necessary conditions to change the rate are lacking, explained the NBRB head. In particular, the inflow of foreign currency to Belarus has dropped, including forex earnings from trade in commodities and services, while the demand for foreign currency among natural persons has risen due to the vacation season. To avoid bringing down Belarusian ruble deposit rates, it is advisable not to reduce the main interest rate for now, remarked Nadezhda Yermakova. At the same time no plans to raise the refinancing rate have been made, there are no reasons to do that. The NBRB head said she hopes that a positive decision on further reduction of the refinancing rate can be made in August.
The NBRB reduced the refinancing rate by 1.5 percentage points to 23.5% on 10 June. The first time the refinancing rate was reduced in 2013 was on 13 March — from 30% per annum to 28.5% per annum. Before that the main interest rate had been stable for half a year. On 17 April the NBRB refinancing rate dropped by 1.5 percentage points to 27% per annum. On 15 May the rate shrank by 2 percentage points to 25% per annum. There are plans to reduce the refinancing rate to 13-15% per annum in 2013. Yet NBRB representatives have stated repeatedly that changes of the key interest rate will depend on the macroeconomic situation, primarily the state of affairs in foreign trade and the currency market, and the actual inflation.
In January-May 2013 inflation in Belarus totaled 6.6%, with the annual expected increase limited to 12%. In May consumer prices rose by 0.7%. In 2012 inflation stood at 21.8%.
A decision on the refinancing rate will be considered soon, remarked the official. “I believe that the refinancing rate should not be moved for now in July,” she said. The necessary conditions to change the rate are lacking, explained the NBRB head. In particular, the inflow of foreign currency to Belarus has dropped, including forex earnings from trade in commodities and services, while the demand for foreign currency among natural persons has risen due to the vacation season. To avoid bringing down Belarusian ruble deposit rates, it is advisable not to reduce the main interest rate for now, remarked Nadezhda Yermakova. At the same time no plans to raise the refinancing rate have been made, there are no reasons to do that. The NBRB head said she hopes that a positive decision on further reduction of the refinancing rate can be made in August.
The NBRB reduced the refinancing rate by 1.5 percentage points to 23.5% on 10 June. The first time the refinancing rate was reduced in 2013 was on 13 March — from 30% per annum to 28.5% per annum. Before that the main interest rate had been stable for half a year. On 17 April the NBRB refinancing rate dropped by 1.5 percentage points to 27% per annum. On 15 May the rate shrank by 2 percentage points to 25% per annum. There are plans to reduce the refinancing rate to 13-15% per annum in 2013. Yet NBRB representatives have stated repeatedly that changes of the key interest rate will depend on the macroeconomic situation, primarily the state of affairs in foreign trade and the currency market, and the actual inflation.
In January-May 2013 inflation in Belarus totaled 6.6%, with the annual expected increase limited to 12%. In May consumer prices rose by 0.7%. In 2012 inflation stood at 21.8%.