The refinancing rate of the National Bank of the Republic of Belarus will be to 20% per annum as from 1 July, BelTA learned from representatives of the Information and Public Relations Office of the country's central bank.
In particular, as from 1 July the refinancing rate will be reduced from 22% to 20% per annum. The interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks will be reduced from 27% to 25% per annum. The interest rate on standing operations designed to drain the liquidity of Belarusian banks will be reduced from 15% to 13% per annum.
The relevant decisions were made by the NBRB Board and the Monetary Policy Committee on 10 June.
Apart from that, as from 1 August 2016 the recommended top limit on interest rates on new fixed-term bank deposits of individuals in national currency will be reduced. If the limit is exceeded, the reserve requirements are raised for the bank that has exceeded the limit. As from 1 August 2016 the recommended top limit will be reduced from 1.0 to 0.9 of the interest rate on the NBRB's standing facilities in the form of overnight loans.
According to the source, the NBRB decisions have been primarily prompted by the slower inflation processes. According to the National Statistics Committee of Belarus, in May 2016 the increase in consumer prices slowed down to 0.5% from April 2016 and to 12.4% from May 2015.
In May 2016 the year-on-year increase in broad money supply totaled 18.9%. The dynamics of this indicator enables conditions conducive to further inflation decline due to monetary factors. With resources on the money market getting cheaper, opportunities are available for continuing the policy of reducing the risk premium in the interest rate.
Consequent decisions concerning monetary management will be made depending on macroeconomic conditions and taking into account the comprehensive forecast of development of the Belarusian economy.
Written by belta.by
