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Belarus’ central bank’s refinancing rate to stay at 7.75%

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MINSK, 12 March (BelTA) – The refinancing rate will stay at 7.75% per annum, the press service of the National Bank of the Republic of Belarus (NBRB) told BelTA.

In a bid to curb inflation the board of Belarus’ central bank has taken a number of decisions to step up control over the growth of the ruble money supply and the broad money supply, which are treated respectively as the operational target and the intermediate target of the monetary management policy in 2021. The central bank’s refinancing rate and the interest rates on operations designed to regulate liquidity will stay at the same level, the source noted.

In the past the National Bank decided to suspend the operations meant to replenish and drain liquidity. The operations will remain suspended until the National Bank Board decides to resume them. Commercial banks will be able to replenish their liquidity via credit auctions for a period of up to seven days. Commercial banks will be free to submit interest rates as their bids or free to accept the central bank’s stated interest rate or not. Monthly auctions for loans for a period of six months at a stated interest rate will also be available. The central bank will provide liquidity to commercial banks in order to hit the operational target and the intermediate target of the monetary management policy.

In 2021 the National Bank Board will no longer follow a strict schedule in organizing sessions to discuss monetary management. Decisions on adjusting the refinancing rate and interest rates on liquidity tools will be made when necessary.

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