Nat'l Bank of Belarus lowers refi rate to 36%
MINSK. April 2 (Interfax) - The National Bank of Belarus (NBB) lowered its key refinancing rate from 38% to 36% on April 2, the bank said in a press release.
The rate is being lowered "gradually, against a backdrop of strengthening positive tendencies in the economy and monetary sphere," the NBB said last week. Inflation is slowing, ruble bank deposits are growing, and foreign trade is improving, however the refinancing rate and other rates remain high, offering far higher returns on ruble deposits than forex savings and the anticipated level of inflation.
The refi rate was lowered from 45% on December 12, 2012 - its highest level since July 2002 - to 43% on February 15 and 38% on March 1. The rate should come down to 20%-23% by the end of the year if inflation is 19%-22%, although Nadezhda Yermakova, the NBB chair, has said the rate could be lower if inflation is lower. Inflation in Belarus was 3.5% in January-February.