Refinancing rate decreases in Belarus

14 июня 2017

The decision to lower the rate was taken by the National Bank due to the positive trends in the economy and stability in the monetary and credit sphere.

The level of the refinancing rate is always a signal about the general situation on the market, a mirror of inflation processes.

Alexander Timoshenko, head of the information and public relations department of the National Bank of Belarus: "The preservation of the net supply of foreign currency on the domestic foreign exchange market gives the National Bank the opportunity to purchase foreign currency to replenish its gold and foreign exchange reserves: on June 1, the gold reserves exceeded 5.2 billion dollars."

The key rate of the National Bank is steadily declining for the third consecutive year. A rate cut is always good news for borrowers. The cheapening of bank loans is a direct consequence of the fall in the rate. So, since the beginning of the year, loans, for example, to legal entities, have fallen in price by more than five percent. Moreover, there are still reserves for further movement of the rate.

The decline in profitability affects the behavior of depositors. Last months, the National Bank registered the outflow of ruble deposits. However, the reduction is not critical. Experts are sure: there is no need to overestimate the risks for the banking system.