Belarus lowers refinancing rate to 25%

           The refinancing rate in Belarus has been reduced by 2 percentage points down to 25% per annum, the information and public relations department of the National Bank of the Republic of Belarus told media. This decision is based on the projected reduction of the inflation rate (in April 2013 the growth in consumer prices was considerably smaller than in the previous months), which is to ensure the positive value of the real interest rate despite the reduction of the nominal rate, the NBRB informed. Belarus posts a surplus in foreign trade in goods and services. Besides, supply of foreign currency exceeds the demand for it on the domestic market. These factors contribute to the stability of the Belarusian ruble and even its strengthening. Against this background ruble deposits are more profitable than deposits denominated in foreign currency, which encourages people to make demand deposits in Belarusian rubles.
“The National Bank will stick to the balanced interest rate policy and timely respond to the changing situation in foreign trade, production sector and financial market, with a view to maintaining monetary stability in the country,” the National Bank concluded.