March 13, Minsk /BELTA/. The Board of the National Bank of the Republic of Belarus has decided to reduce the refinancing rate by 1.5 percentage points to 28.5% per annum from March 13, 2013. This was reported to a BELTA correspondent by the Information and Public Relations Department of the National Bank.
"The refinancing rate was last reduced in September 2012. Maintaining it at the level of 30% per annum for 6 months allowed for the degree of monetary stringency necessary to maintain macroeconomic balance and achieve inflation reduction targets," the National Bank noted.
The actual slowdown in inflation processes observed in February of the current year and the projected further deceleration provide grounds for a gradual reduction in the nominal value of the refinancing rate while maintaining its positive real level.
"This way, attractive conditions for savings in Belarusian rubles continue to be maintained, ensuring their reliable protection against inflation and higher yields compared to deposits in foreign currency," the National Bank said.
The refinancing rate is planned to be reduced to 13-15% per annum in 2013. At the same time, as National Bank representatives have repeatedly stated, the dynamics of the refinancing rate will depend on the macroeconomic situation, primarily in foreign trade and on the foreign exchange market, as well as on the level of actual inflation. Inflation in Belarus for the first two months of the current year amounted to 4.3% (1.2% in February) with a forecast for 2013 of no more than 12%.
In addition, from March 13, by decision of the Monetary Policy Committee of the National Bank, the rates on standing facilities for liquidity withdrawal are reduced from 19% to 17% per annum, and the rates on bilateral operations to support banks' current liquidity are reduced from 35% to 33% per annum. At the same time, the rates on standing facilities to support banks' current liquidity remain unchanged at 50% per annum.-0-