MINSK, 18 July (BelTA) – Belarus will reduce the refinancing rate to 31% per annum on 18 July. This decision is stipulated in Resolution No. 352 of the Board of the National Bank of Belarus as of 12 July 2012, BelTA learnt from the information and public relations department of the National Bank.
“The refinancing rate is being gradually reduced against the background of slow inflation growth that accords with our projections, and efficient operation of Belarusian companies on external markets,” the National Bank noted. To prove its point, the National Bank provided the following facts and figures: in H1 2012 consumer prices rose by 10.5%, while the core inflation that excludes movements in regulated prices and prices for seasonal products was estimated at 9.5%.
“Despite the increased mutual fluctuations of cross rates of foreign currencies on the international market, the $3 billion trade surplus in January-May 2012 and the overall external surplus contribute to strengthening of the Belarusian ruble,” the National Bank underlined.
Experts of the National Bank said that the reduction of the refinancing rate by one percentage point in July “is part of the anti-inflation monetary policy that will help preserve stringent monetary conditions by supporting real interest rates in the economy”. According to the National Bank experts, this will protect deposits in the Belarusian ruble from inflation and increase the profitability of these deposits compared with deposits in foreign currencies.
By the end of the year, the refinancing rate is projected to go down to 22-23%, while the inflation rate is to reduce to 21-22%.