/ / News

Belarus' central bank to reduce refinancing rate on 15 February

MINSK (BelTA) – The National Bank of the Republic of Belarus (NBRB) will reduce the refinancing rate from 17% to 16% per annum on 15 February, BelTA learned from the NBRB Information and PR Office.

On 15 February the National Bank will reduce the interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks was reduced from 22% to 20% per annum.

The Board and the Monetary Policy Committee at the National Bank adopted these decisions proceeding from the consumer price dynamics, the analysis of the situation on the currency and deposit markets, foreign trade and balance of payments. Inflation continues to slow down. The consumer price index increased by 10.6% in December 2016 as against December 2015 (below the target of 12%). The consumer price increase is expected at 9.6% in January in annual terms and at around 9% in February-March,” the NBRB said.

The monetary factors continue to exert the major influence on the inflation. Average broad money supply increased by 0.3% in January 2017 as against January 2016, which corresponds to the evolving macroeconomic conditions.

The domestic currency market is characterized by the net foreign currency supply, mainly due to the sale of foreign currency by individuals. “In the business segment the currency supply and demand are balanced reflecting the trends in foreign trade. In general, these factors create the conditions for stability of the exchange rate of the Belarusian ruble. In the domestic deposit market, retail ruble-denominated deposits continue increasing. The share of new irrevocable deposits is growing in the structure of deposits,” the central bank said.

The last time the National Bank cut down the refinancing rate was on 18 January: from 18% to 17% per annum.