Business news

MINSK, 18 October (BelTA) – The Board of the National Bank of the Republic of Belarus (NBRB) has decided to reduce the refinancing rate from 11.5% to 11% per annum as from 18 October, BelTA learned from the NBRB Information and PR Office.

The decision followed the September quarterly meeting to assess and forecast the situation in the country's economic and monetary sector.

“Inflation in Belarus keeps slowing down. In August 2017 the consumer price growth reduced by 5.3% year on year. The major contribution to slowing down the consumer price growth was made by goods free from seasonal effect and administrative regulation,” the central bank said.

The share of goods in the consumer basket, which prices went up by at least 5% year on year, increased to 63% in August 2017 (about 30% a year ago). Keeping in mind the inflation dynamics, the growth of consumer prices at the end of 2017 will be lower than it was expected, closer to 6%. The NBRB further decisions on changing interest rates will depend on inflation risks restraining the achievement of the medium-term objectives (under 5% in 2020).

It is the eighth time Belarus’ central bank reduces its refinancing rate this year. The key interest rate went from 18% to 17% per annum on 18 January, from 17% to 16% on 15 February, from 16% to 15% on 15 March, from 15% to 14% on 19 April, from 14% to 13% on 14 June, from 13% to 12% on 19 July, and was lowered to 11.5% per annum on 13 September.