The refinancing rate in Belarus will be reduced from 16% to 15% per annum from March 15. This was reported to BELTA by the Information and Public Relations Department of the National Bank.
From March 15, the refinancing rate will be reduced from 16% to 15% per annum, and the rates on standing facilities for supporting banks' current liquidity and on bilateral operations of the National Bank will be reduced from 20% to 18% per annum. In addition, the rates on standing facilities for withdrawing liquidity have been reduced from 11% to 10% per annum.
The National Bank stressed that the latest reduction in interest rates this year became possible due to the slowdown in inflation, as well as positive trends in the currency and deposit markets. "Inflation continues to decline, and its slowdown is occurring at a faster pace than previously expected," the National Bank's statement reads.
The strengthening trend of inflation slowdown is associated with the strengthening of the Belarusian ruble in January-February, which is due to a significant excess of foreign currency supply over demand in the domestic foreign exchange market. The net supply of currency was formed mainly through the sale of currency by the population against the backdrop of balanced operations of economic entities.
The prevailing monetary conditions remain the basic factor restraining inflation. The average broad money supply in February of this year increased by 1% compared to February 2016 (excluding changes in the ruble equivalent of the currency component of the money supply).
The deposit market continues to show positive dynamics in household deposits in Belarusian rubles, considering the attractive level of their real return.
"Further slowdown of inflationary processes, as well as the preservation of positive trends in the currency and deposit markets, will allow maintaining the direction of interest rate policy towards reducing interest rates in the economy in the coming months," the National Bank stated.
The refinancing rate has been reduced in Belarus for the third time since the beginning of the year. Thus, from January 18, it decreased from 18% to 17% per annum, and from February 15 - from 17% to 16% per annum.