National Bank of Belarus lowering refi rate to 12% on July 19
MINSK. June 28 (Interfax) - The National Bank of Belarus (NBB) is lowering its refinancing rate from 13% to 12% per annum on July 19, the NBB said in a press release.
The interest rates on standing and bilateral transactions designed to maintain the current liquidity of banks will be reduced from 15% to 14% per annum.
The latest rate cut is the sixth this year: on January 18, 2017, the rate was cut from 18% to 17% per annum; on February 15 - to 16%; on March 15 - to 15%; on April 19 - to 14%; and on June 14 - to 13%.
The rate is being lowered again as positive tendencies in the economy gain momentum, aided by moderate growth for money supply, an improved balance of payments and currency market stability, the NBB said.
Consumer price inflation remains low at an estimated 6.2% in June, with uniform price growth across all groups of goods, and underlying inflation an estimated 5.3%. Broad money supply growth still averaged at around 5% in annual terms. Net foreign currency supply is having a positive impact on gold and currency reserves and keeping the national currency stable.
Inflationary expectations continued to decline against this backdrop, and this will have a positive influence on the pace of price growth in the coming months.
Further rate cuts will depend on the sustainability of lower inflationary expectations, the NBB said.