The refinancing rate of the National Bank on May 18 will be increased by 1 percentage point to 14% per annum. Such a resolution passed by the Board of the main banking institutions in the country on May 11.
As explained in the information department of the National Bank, the decision was taken "in view of significant growth this year, consumer prices in Belarus."
The National Bank expects that the increase in the refinancing rate, and thus the interest rate on deposits will enhance the protection of the depreciation of the ruble deposits, increase their profitability, and will also help to stimulate the inflow of funds into the banks.
This is the third increase in the refinancing rate from the beginning of the year. The previous time it was increased 16 March — by 1.5 percentage points (from 10.5 to 12%), followed by 20 April — 1% to 13%.
April 19 the first deputy head of the National Bank Nikolai Luzgin said that the refinancing rate will be formed including according to the expected rate of inflation. "The establishment of the refinancing rate will be considered from the point of view of not only actual but also the expected rate of inflation," — said Luzgin.
The refinancing rate is the instrument of monetary control by which the National Bank to influence the interbank market, and the interest rates on deposits of legal entities and individuals, and loans that give them credit organizations.
The main directions of the monetary policy 2011 It is reducing the refinancing rate by the end of the year to 8.10% per annum.
In 2010 refinancing rate in Belarus znizhalasya six times (in February, April, May, July, August, September). September 15 last year, it was set at 10.5%.