Key lending rate in Belarus down to 18% per annum as from 17 August

MINSK (BelTA) – The refinancing rate of the National Bank of the Republic of Belarus (NBRB) will be reduced by two percentage points to 18% per annum as from 17 August, BelTA learned from representatives of the Information and Public Relations Office of the country's central bank.

In particular, as from 17 August the refinancing rate will be reduced from 20% to 18% per annum. The interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks will be reduced from 25% to 23% per annum.

The relevant decisions were made by the NBRB Board and the Monetary Policy Committee on 3 August after reviewing the dynamics of inflation processes, the state of the balance of payments and the current account, the situation on the currency market and the financial market of the country.

The source stated that foreign currency sales have been exceeding foreign currency purchases on the domestic currency market since February 2016, including the corporate sector.

The structure of the deposit market is improving primarily thanks to customers switching to irrevocable deposits with longer deposit periods.

The lower interest rates will improve the ability of non-financial organizations to honor their credit commitments to banks, thus reducing financial stability risks, explained the National Bank of the Republic of Belarus.