The Board of the National Bank of the Republic of Belarus (NBRB) has decided to reduce the refinancing rate from 12% to 11.5% per annum on 13 September 2017, BelTA learned from the information and public relations office of the National Bank of the Republic of Belarus (NBRB).

The interest rates on standing and bilateral transactions designed to maintain banks' current liquidity will be reduced from 14% to 13% per annum.

Actual inflation continues to slow down. In August 2017 the consumer price growth is projected to stay below 6% in annual terms, the core inflation at about 5% in annual terms.

The persistent moderate growth of consumer prices (6-6.5%) reflects the stability of the inflation slowdown processes and a high likelihood of the inflation remaining at this level in the coming months. No significant risks to the accelerated price growth from the monetary factors, current account balance and foreign exchange market are expected in the medium term.

Money supply growth remains moderate (at 7.8% in July 2017) and meets the demand of the economy for money amid economic recovery (GDP growth at 1.1% in January-July).

The net foreign currency supply trend persists in the domestic currency market thanks to the improving foreign trade balance (surplus at $0.4 billion in January-June) and balanced current accounts. The exchange rate of the Belarusian ruble remains stable.

In general, consumer price growth is projected to stay below 7% by the year-end 2017. The possibility of further gradual reduction of interest rates in the economy will depend on the inflationary risks hampering the achievement of the medium-term inflation target (below 5% by 2020).

This is the seventh time the refinancing rate has been revised downward since the start of 2017. Previously, it was reduced from 18% to 17% on 18 January, from 17% to 16% on 15 February, from 16% to 15% on 15 March, from 15% to 14% on 19 April, from 14% to 13% on 14 June, and from 13% to 12% on 19 July.