Republic

Refinancing rate in Belarus to remain at 23.5% in December

MINSK, 13 December (BelTA) - On 11 December the Board of the National Bank of Belarus took a decision to keep the refinancing rate at the level of 23.5% per annum, BelTA learned from the information and public relations department of the National Bank.

"Keeping the current interest rate will limit the increase in inflation, which in recent months has been running above the projected parameters. In November, consumer prices rose by 1.6% versus 1.9% and 1.7% in October and September 2013 respectively," the National Bank said.

The last time the National Bank reduced its refinancing rate was on 10 June. Back then the Bank cut the key rate by 1.5 percentage points to 23.5%. In 2013, the refinancing rate was decreased on 13 March - from 30% to 28.5% per annum (before this the rate had not been changed for over half a year). On 17 April the National Bank cut the refinancing rate by 1.5 percentage points to 27%, and then on 15 May by 2 percentage points to 25% per annum. In general, in 2013 the refinancing rate was expected to be reduced to 13-15% per annum. However, the National Bank repeatedly stated that everything would depend on the macroeconomic situation.

In January-November the inflation stood at 13.8%, well above the 12% projections. In 2013 the inflation is projected at the level of 15-16%.