National Bank Raises Refinancing Rate by 2%

22.06.2011 10:45

National Bank of Belarus raises the refinancing rate by 2% on June 22, making thus 18% per annum. This is provided by decree № 230 of the National Bank of June 14.

As Telegraf previously reported, it’s the fifth increase in the refinancing rate for the year; last time it increased by 16% on June 1.

«This decision was made within a coherent policy aimed at increasing the yield of deposits in Belarusian rubles and protection of banks’ ruble savings from inflation. The gradual increase in refinancing rate is adjusted for the interests of credit borrowers, giving them time to adapt to new economic conditions,» National Bank said.

The National Bank will continue to pursue a balanced interest rate policy, focusing on the safety and attractiveness of ruble deposits of both households and organizations, pledged in the bank.
The 18% refinancing rate was registered last in September 2004.

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