NBRB’s refinancing rate may reach 11-14% in late 2008

By the end of the year the refinancing rate of the National Bank of the Republic of Belarus may reach 11-14%. The figures are specified by draft Major Monetary Management Guidelines for 2009. The calculations were made taking into account the expected increase of around 14% in consumer prices in 2008 according to assessments of the Economy Ministry. In late 2008 the average interest rate for new bank loans (without preferential loans) will total 14-17% per annum, for new fixed-term deposits — 11-14%. The Economy Ministry expects consumer prices to grow by 9-11% in 2009. With that in mind the refinancing rate may reach 10-12% by late 2009. As of January 1, 2009 the official exchange rate of the Belarusian ruble is expected at Br2,100 per $1. In 2008 the ruble money supply is expected to swell by 34-38% in line with the economy’s demand for money. The borrowing is expected to increase by about 41%.