The Board of the National Bank of the Republic of Belarus has decided to reduce the refinancing rate from 11.5% to 11% per annum from October 18, the Information and Public Relations Department of the National Bank informed BELTA.
The decision was made following the quarterly meeting held at the end of September to assess and forecast the situation in the economy and the monetary sphere.
"Inflationary processes continue to slow down. In August 2017, the annual growth in consumer prices decreased to 5.3%. Goods not subject to seasonal influences and administrative regulation contribute the most to the slowdown in annual consumer price growth rates," the National Bank explained.
The share of goods in the consumer basket, whose prices have increased by less than 5% year-on-year, rose to 63% in August 2017 (about 30% a year earlier). Taking into account the actual inflation dynamics, it is expected that the consumer price growth for the full year 2017 will be lower than previously forecast, closer to 6%. Further decisions on changing the interest rates of the National Bank will be determined by the probability and magnitude of the realisation of inflation risks that hinder the achievement of the medium-term inflation target (no more than 5% in 2020).
The refinancing rate is being reduced in Belarus for the eighth time since the beginning of the year. Thus, from January 18, it was reduced from 18% to 17% per annum, from February 15 - to 16% per annum, from March 15 - to 15% per annum, from April 19 - to 14% per annum, from June 14 - to 13% per annum, from July 19 - to 12% per annum, from September 13 - to 11.5%.