The Belarus National Bank has lowered the refinancing rate from 20% to 18%.
This is the fourth decline in the refinancing rate from the beginning of 2016. It is expected that this will lead to cheaper loans. Usually, rate of loans that individuals and legal entities can get depends on the refinancing rate.
Evgeny Novik, financial analyst, Alpari:
The decision to reduce the refinancing rate and interest rates on overnight loans was taken in the face of declining inflation and stable indicators of monetary supply in Belarusian rubles, which are staying around the figures that we saw at the beginning of 2016. After the introduction of taxation on short-term recallable deposits, people returned to long-term deposits. And the structure of bank liabilities now reflects the fact that the so-called irrevocable deposits prevail.