National Bank of Belarus increased the refinancing rate by 1.5% to 12% per annum on March 16, 2011. Appropriate action was taken by the National Bank on March 10 in order to adequately respond to the rising inflation, observed early this year."
Consumer price index reached 102.7% in February 2011. As explained in the National Bank, this is largely explained by the increase of tariffs for housing services due to increased purchase prices for natural gas from Russia, as well as the rise in world prices of energy and food prices.
The National Bank reported that an increase in refinancing was triggered by the need to perform a key principle of interest-rate policy, namely the maintenance of money market rates at a positive level in real terms for the reliable protection of citizens’ ruble deposits from inflation.
«With strict compliance with the parameters of the exchange rate policy under the monetary and credit policy of Belarus for 2011, this measure will further enhance the attractiveness of ruble savings against deposits in foreign currency,» said the National Bank.
Earlier, as Telegraf previously reported, the National Bank of Belarus plans to set up the refinancing rate at 8.10% per annum with projected inflation 7.5-8.5% in 2011. Position on this is contained in the decree № 597 «On approval of the monetary and credit policy of Belarus for 2011,» signed by President of Belarus Alexander Lukashenko on November 19.
Meanwhile, in February, Deputy Prime Minister of Belarus Sergei Rumas said that the refinancing rate could be improved in 2011. «It is possible that the refinancing rate will be soon increased, adjusted for the inflation rate, despite the fact that the Government and the National Bank declared about its decrease,» he said.
