Business news

MINSK, 19 September (BelTA) – Belarus’ National Bank does not rule out further cuts in the rate of refinancing in 2017, Sergei Kalechits, Deputy Chairman of the Board of the National Bank of the Republic of Belarus (NBRB), told the media on the sidelines of the high-level conference on the OECD financial education project for the countries of the Commonwealth of Independent States, BelTA has learned.

"We have recently reduced the refinancing rate. We kept our promise and cut down the refinancing rate when the inflation slowed down,” Sergei Kalechits said.

“Given the current trends, we project the rate of inflation, taking possible changes into account, within 6-7% year-on-year. This is an important factor which we take into consideration while making a decision to cut down the refinancing rate. The other factors include the situation on the deposit, loan and exchange markets. Thus, we can say that today there are the opportunities to consider lowering the refinancing rate," Sergei Kalechits said. He stressed that the National Bank does not exclude that the refinancing rate may be further reduced in 2017.

Sergei Kalechits also noted that the Belarusian central bank may opt for a more cautious pace. "This year we have been able to take many steps in this direction thanks to the economic situation in the country. If we do make a decision on a further cut in the refinancing rate, it will be not 1-2% as it was before," he said.

On 16 September the refinance rate in Belarus was reduced to 11.5% p.a. This is the seventh time the refinancing rate has been revised downward since the start of 2017. Previously, it was reduced from 18% to 17% 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, and from 13% to 12% on 19 July.