The National Bank of Belarus does not rule out the possibility that smaller steps will be taken to reduce the refinancing rate in 2018, BelTA learned from Deputy Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Sergei Kalechits on 27 February.
“As for the refinancing rate, we have already voiced the forecasts. They are stipulated by the monetary policy guidelines [down to 9.5% at the end of the year]. We believe that the situation will allow us to reach this level,” Sergei Kalechits said. He added that the decision on the size of further key rate cuts will depend on the economic situation. “Of course, the rate cuts are unlikely to increase in size. Most likely the rate cuts will be smaller because we are now dealing with reasonable numbers where fine-tuning is in order,” he explained. Previously the National Bank said that it might reduce the refinancing rate in steps as small as 0.25%.
Sergei Kalechits noted that when and how much the refinancing rate will be revised is a matter of tactics. “When considering matters of monetary policy, we always examine the matter of the refinancing rate since it is one of the key components. Each time we decide to revise the refinancing rate or not depending on an entire set of factors, the situation on the market,” he noted.
The last time the refinancing rate was reduced in Belarus was on 14 February when it was cut down from 11% to 10.5% per annum.