Refinancing rate of the Belarusian National Bank rose by 2% up to 16% on June 1, 2011. The corresponding decree № 200 of 30.05.2011 made by the Board of the National Bank, adjusted for the continued growth of consumer prices and high inflationary expectations, reported in the National Bank.
«Another refinancing rate hike, and accordingly the interest rate on deposits, is aimed at increasing the yield of deposits in Belarusian rubles and strengthening the protection of banks’ ruble savings from inflation,» reported in the country’s main bank.
National Bank will continue to further pay close attention to the safety and attractiveness of the ruble-denominated deposits in banks and organizations.
Thus, it will be the fourth refinancing rate increase this year.
As Telegraf previously reported, the refinancing rate rose last from 13 to 14% per annum on May 18.
Reference:
The refinancing rate is the interest rate on an annualized basis, payable to the central bank for loans. These loans are refinancing a temporary shortage of financial resources. These loans provide for regulation of liquidity in the banking system with a lack of credit institutions’ funds for lending to customers and fulfill the assumed obligations. Usually, the refinancing rate is a lending rate for one night (overnight, provided by the credit institution at the end of the day in the amount of the outstanding intraday credit), the size of which is the largest compared with the established rates of lending to other terms.
The refinancing rate is the instrument of monetary regulation, by which the central bank influences the interbank market rate, as well as rates on deposits of businesses, individuals and loans, provided to them by credit institutions.
