National Bank Increases Refinancing Rate for the Fifth Time This Year

16.06.2011 15:56

National Bank's refinancing rate is going to increase by 2% on June 22 and will amount to 18% per annum. This is provided by decree № 230 of the National Bank of June 14. It will be the fifth increase in the refinancing rate for the year; it rose last up to 16% per annum on June 1.

«This decision was made within a coherent policy aimed at increasing the yield of deposits in Belarusian rubles, as well as strengthening of protection of bank’s ruble deposits from inflation. Such gradual increase in refinancing rate takes into account the interests of credit borrowers, giving them time to adapt to new economic conditions,» told the National Bank.

The National Bank will continue to pursue a balanced interest rate policy, focusing on the safety and attractiveness of ruble deposits of households and organizations in banks, pledged in the bank.

As Telegraf previously reported, the refinancing rate rose from 13% to 14% per annum on May 18 for the third time in 2011. It rose last time up to 18% in September 2004.

In addition, inflation in Belarus has reached 25.4% since the beginning of the year. Only in May, inflation was 13.1%. Meanwhile, the inflation forecast, as approved by the government at the end of 2010, amounted to 7.5-8.5%.