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Belarus' central bank to reduce refinancing rate to 9.5% on 14 August

MINSK, 7 August (BelTA) – The Board of the National Bank of the Republic of Belarus (NBRB) will reduce the refinancing rate from 10% to 9.5%  and the overnight lending rate from 11.5% to 10.75% per annum. The overnight deposit rate will be cut down from 8.5% to 8.25% per annum as from 14 August. The central bank made these decisions following the latest session to discuss monetary management policy, BelTA has learned.

“In Q2 the inflationary processes slowed down. The consumer price growth, with the exception for seasonality, was below the target level of 5% in Q2 (above the target in the previous three quarters). The latest decisions are designed to maintain the neutrality of the interest policy in the face of the projected slowdown in the inflation processes, keeping the 2019 inflation target in mind,” the central bank noted.

The reduced rates on overnight loan and overnight deposit will narrow the corridor of interest rates on banks liquidity regulation tools and will help improve the efficiency of the transmission mechanism of monetary policy.

Further decisions concerning the key interest rates of the central bank will depend on how the balance of inflationary and deflationary factors shifts.

The next session of the NBRB Board to discuss monetary management policy is scheduled for 6 November.

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