The refinancing rate in Belarus will be reduced to 32% per annum from June 20

June 15, Minsk /Corr. BELTA/. The refinancing rate in Belarus will be reduced to 32% per annum from June 20, 2012. The relevant decision was made by the Board of the National Bank, the Information and Public Relations Department of the National Bank informed BELTA correspondent. At the same time, the interest rate on permanently available liquidity support operations (overnight credit, overnight SWAP) and bilateral operations (lombard credit, SWAP transactions) will be reduced from 55% to 50% per annum. The actual dynamics of most macroeconomic indicators and their assessment for the medium term confirm the possibility of reducing the nominal level of interest rates in the economy without increasing risks to the country's balanced development, the National Bank noted. "The inflation rate generally corresponds to the forecast parameters for 2012. Consumer prices for goods and services in May 2012 compared to December 2011 increased by 8.5%, while the core consumer price index was at a lower level – 108%," the country's main bank reported. "The state and prospects of foreign trade are assessed as favorable. Maintaining a positive foreign trade balance has a positive impact on the exchange rate dynamics of the Belarusian ruble, despite short-term fluctuations in supply and demand in the domestic foreign exchange market," the National Bank said. At the same time, devaluation and inflation expectations persist, with a general trend of their decline, the country's main bank noted. "This factor indicates the prematurity of a significant easing of monetary policy," they emphasized. "At the same time, a reduction in the refinancing rate by 2 percentage points amid slowing inflation allows real interest rates in the credit and deposit market to remain at the previous level. Thus, the current degree of tightness of interest rate policy is maintained, ensuring the formation of conditions necessary to maintain macroeconomic and financial stability in the country," the National Bank noted. -0-