National bank's refinancing rate down to 11% as from 18 August

The refinancing rate of the National Bank of the Republic of Belarus (NBRB) will be reduced by 0.5 percentage points to 11% per annum as from 18 August. Relevant resolution No 335 of 9 August 2010 has been passed by the NBRB management, representatives of the NBRB Information Office told BelTA.

The regular reduction of the refinancing rate is meant to reduce the overall level of interest rates available in Belarus. It is an important factor contributing to economic growth, modernization, and structural remodeling of the manufacturing industry for the sake of achieving a quality new level of Belarus’ social and economic development.

The reduction of the refinancing rate has been fostered by the overall stable economic situation in the country, including low inflation process intensity. Interest rates for Belarusian ruble deposits will still stay considerably higher than those for foreign currency deposits.

In H1 2010 the NBRB reduced the refinancing rate three times from 13.5% in January to 12% per annum in June. On 14 July the refinancing rate dropped by 0.5 percentage points to 11.5%. Thus, the refinancing rate is within the range set by the 2010 Major Monetary Management Guidelines (9-12%).

According to belarusian portal