30 July 2007
National Bank to cut refinance rate to 10.50 percent on August 1
The National Bank of Belarus (NBB) will lower its base refinance rate by 0.25 percentage point to 10.50 percent on August 1, one month after the previous reduction.
The NBB raised the base refinance rate from 10 to 11 percent earlier this year to make interest rates on rubel deposits more attractive amid surging demand for foreign cash but cut the rate to 10.75 percent on July 1.
Belarus' consumer prices rose by 0.6 percent a month on the average between January and June 2007, the NBB press office said.
The reduction of the base refinance rate is aimed at making bank loans cheaper and access to them easier, as specified in the country's monetary policy guidelines for this year, the press office explained.
Following the move, the refinance rate will still remain higher than the inflation rate and allow rubel deposits with banks to be more profitable than deposits in foreign currencies, the press office added.
The government projects the base refinance rate to be lowered to nine percent toward the end of the year.
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