The National Bank reduces the rate of refinancing to 11.5% per annual from 14 July 2010, BelTA learnt from the information department of the National Bank of Belarus.
As the positive tendencies are growing in the economy and financial sector, the National Bank decided to reduce the refinancing rate by another 0.5%, the information department noted. Starting 14 July it will make 11.5% per annum. The board of the National Bank adopted relevant resolution No.277 on 6 July 2010.
Another cut in the rate of refinancing will encourage the banks to reduce the rates on loans to economic entities and individual clients, which will serve an additional stimulus for promoting economic growth in the country.
Interest rates on ruble-denominated deposits still exceed the interest rates on foreign currency deposits and projected inflation rate.
A reminder, 12 May this year the rate of refinancing was cut down from 12.5% to 12%. On 19 April this year the rate of refinancing was reduced from 13% to 12.5%.
In line with the 2010 monetary policy guidelines, the refinancing rate is to be reduced to 9-12% per annum by the year-end, interest rates on loans – down to 12-15% per annum.