On May 11, Minsk /BELTA correspondent/. The National Bank of the Republic of Belarus will reduce the refinancing rate to 34% per annum from May 16. This was established by Resolution No. 229 of May 10, 2012, adopted by the Board of the National Bank, the Information and Public Relations Department of the National Bank informed a BELTA correspondent. The Bank's Monetary Policy Committee has decided to reduce the interest rate on permanently available liquidity-providing operations (overnight credit, overnight SWAP) and bilateral operations (lombard credit, SWAP transactions) from 60% to 55% per annum, and the interest rate on permanently available liquidity-absorbing operations (overnight deposit) from 23% to 20% per annum, effective May 16 of the current year. The Bank's Information and Public Relations Department noted that these decisions are based on positive assessments of the continuation of current economic trends this year, primarily the slowdown of inflationary processes. The consumer price index for goods and services in April 2012 compared to December 2011 was 106.8%, including the core consumer price index – 106.1%, which corresponds to their projected dynamics, with an inflation rate of 19-22% expected by the end of the year. According to the National Bank, the consistent increase in the positive balance of foreign trade in goods and services, along with the constant excess of foreign currency supply over demand in the domestic foreign exchange market, creates conditions for the stability of the Belarusian ruble's exchange rate and even for the strengthening of the national currency. Despite the reduction in interest rates, monetary conditions will maintain the degree of tightness necessary to support macroeconomic and financial stability in the country. "The National Bank intends to continue pursuing a flexible interest rate policy, responding promptly to changes in the situation in foreign trade, the real sector of the economy, and financial markets," the Information and Public Relations Department emphasized.-0-

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