The latest move marks a continued string of aggressive rate increases, with the Bank previously raising the refinancing rate by 300bps to 30%, 500 basis points to 27% and 200 basis points to 22%. The total amount of increases since the start of the year is now 2450 basis points. Belarus reported consumer price inflation of 36.2% in the year to June, according to the National Statistic Committee, meanwhile the government is forecasting 2011 inflation of as much as 39%.
The Bank also said in a separate announcement that interest rates on liquidity management operations would also increase, with the overnight deposit rate rising to 25% and the overnight credit rate rising to 50%. The move "aims to enhance the impact of interest rate policy on the economy, restrictions on lending activity and stabilize the currency market."