The National Bank of the Republic of Belarus raised its refinancing rate by 200 basis points to 16.00% from 14.00% previously. The Nacionalny Bank Respubliki Belarus said "The decision was made considering rising consumer prices and high inflationary expectations,". The Bank also said: "Raising the refinancing rate and the deposit interest rates is aimed at making bank deposits in Belarusian rubles more profitable as well as guarding ruble savings in banks against inflation."
Previously the Bank raised interest rates 100 basis points to 14.00% on the 18th of May. The Bank also devalued the currency by 36% on the 24th of May, after establishing a dual market structure for trading foreign exchange in April, as the Belarusian economy deals with a credit crisis and currency crisis. Belarus reported consumer price inflation of 4.5% in April, placing the total for the first four months of the year to 10.9% according to the National Statistic Committee. Meanwhile the government is forecasting 2011 inflation of as much as 39%.