The refinancing rate in Belarus will be reduced to 31% per annum from July 18

July 13, Minsk /BELTA/. The National Bank of Belarus will reduce the refinancing rate to 31% per annum from July 18. This was stipulated by Resolution No. 352 of July 12, 2012, adopted by the Board of the National Bank, the Information and Public Relations Department of the National Bank informed a BELTA correspondent. "The policy of gradual reduction of the refinancing rate is being pursued against the backdrop of low intensity of inflationary processes, which corresponds to the forecast parameters, and the effective performance of Belarusian enterprises in foreign markets," the National Bank noted. To confirm this, the National Bank cited the following statistical data for the first half of 2012: the consumer price index increased by 10.5% over six months, while core inflation, excluding changes in regulated prices and prices of seasonal products, stood at 9.5%. "Despite increased mutual fluctuations of foreign currency cross rates in global markets, the positive balance of foreign trade in goods and services, which exceeded $3 billion in January-May 2012, and the positive overall balance of payments create a stable trend in the exchange rate of the Belarusian ruble," the National Bank emphasized. Experts of the National Bank believe that the reduction of the refinancing rate by 1 percentage point in July "is consistent with the anti-inflationary orientation of monetary policy and will help maintain tight monetary conditions by supporting positive real interest rates in the economy." In their opinion, this will ensure not only reliable protection of savings in Belarusian rubles from inflation but also a significant excess of the yield on ruble deposits over currency deposits. According to forecasts, by the end of the year, the refinancing rate should decrease to 22-23%, and inflation should be at the level of 21-22%. -0-