The refinancing rate will be reduced from 10% to 9.5% per annum from August 14, the overnight loan rate from 11.5% to 10.75% per annum, and the overnight deposit rate from 8.5% to 8.25% per annum, BELTA reports.
In the second quarter, the intensity of inflationary processes slowed down. The assessment of consumer price growth, excluding seasonality for the second quarter, shows a decrease below the target level of 5% (in the previous three quarters, the growth was above this parameter).
"The decisions made in the area of interest rate policy ensure its neutral character is maintained in the context of projected slowdown of inflationary processes and the achievement of the inflation target for 2019," the National Bank noted.
The reduction in overnight loan and overnight deposit rates will narrow the corridor of interest rates on instruments for regulating banks' liquidity and will contribute to increasing the effectiveness of the monetary policy transmission mechanism.
Further decisions on the key interest rates of the National Bank will depend on the balance between inflationary and deflationary factors.
The next meeting of the Board of the National Bank on monetary policy is scheduled for November 6.