The refinancing rate of the National Bank of Belarus on October 14 is increased from 30 to 35% per annum. The corresponding decree №442 was adopted by the Board of the National Bank on October 12, learned BelaPAN in the main bank of the country.
"This decision is another step towards progressive realization of the joint economic policy of the National Bank and the government aimed at macroeconomic stabilization, reducing the pressure on the Belarusian ruble exchange rate and reducing inflation", said the press service of the National Bank.
Speaking at a session of the Council of the Republic on October 3 the head of the National Bank Nadezhda Ermakova stated: "In principle, today it (the refinancing rate) has stopped to play a role, because the interest rates on deposits of the population is much higher - up to 40-45%. Loans have also reached 40%. Therefore, if to raise the refinancing rate, it won't reach the inflation rate. Because if to make it 80%, then we can practically stop the entire economy. That is in a certain period the refinancing rate doesn't work anymore".
The inflation rate in September amounted to 13.6%, from the beginning of the year - 74.5%.
This is the tenth increase of the refinancing rate since the beginning of the yeare. Previously, it rose on March 16 (from 10.5 to 12%), April 20 (13%), May 18 (14%), June 1 (16%), June 22 (18%), 13 July (20%), August 17 (22%), 1 September (27%) and on September 14 (30%).
It should be noted, that the main orientations of the monetary policy in 2011 planned to reduce the refinancing rate by the end of the year up to 8-10% per annum.
The refinancing rate is the instrument of monetary regulation, through which the National Bank influences on the interbank market rates, and the rates on deposits of businesses and individuals, and the loans provided to them by lending institutions.