MINSK, 13 March (BelTA) – The Board of the National Bank of the Republic of Belarus (NBRB) has decided to reduce the refinancing rate by 1.5 percentage points down to 28.5% on 13 March 2013, BelTA learnt from the information and public relations department of the NBRB.
“The refinancing rate has not been reduced since September 2012. By keeping the refinancing rate at 30% for six months we managed to maintain macroeconomic balance and reduce the inflation rate, thus sticking to a tough monetary policy,” the National Bank informed.
The inflation slowed down in February and this trend is expected to remain in place. This allowed the NBRB to gradually reduce the nominal refinancing rate while keeping the real refinancing rate positive.
“Thus, savings in Belarusian rubles are still attractive and more profitable than deposits in foreign currency,” the NBRB said.
The refinancing rate is to be reduced to 13-15% in 2013. However, the National Bank reiterated that it will take into consideration the inflation rate and other economic indicators. In January-February 2013, the inflation rate stood at 4.3% (1.2% in February); the projected inflation rate for 2013 is under 12%.
Besides, the Monetary Policy Committee of the National Bank made a decision to reduce the interest rate on constantly available liquidity withdrawal transactions from 19% to 17% and to cut the interest rate on bilateral transactions on liquidity support of banks from 35% to 33%. The changes will be effective starting from 13 March. The interest rate on constantly available transactions on liquidity support of banks will remain unchanged at 50%.