The central bank of Belarus
cut its benchmark refinancing rate by 100 basis points for the sixth month in a
row and said the possibility of further rate cuts would be determined by the
continued easing of the risks to inflation.
The
National Bank of the Republic of Belarus cut its refi rate to 12.0 percent from
13.0 percent and has now cut it by 600 basis this year. Since March 2016, when
the central bank began lowering rates from 25 percent, the rate has be cut by
1,300 points.
The
central bank said inflation expectations had continued to ease and this would
have a favorable effect on the rise in prices in coming months.
It
added the average annual growth of broad money was around 5 percent in June and
the continued net supply of foreign currency to the domestic market had a
positive impact on International reserves and ensured a stable exchange rate of
the Belarus ruble.
Inflation in Belarus was estimated by the central bank at 6.2 percent,
slightly up from 6.1 percent in May but down from 6.3 percent in April. Core
inflation confirmed the growing stability of decelerating inflation and was
estimated at 5.3 percent in June.
Last
month the central bank said it expected inflation to remain slightly above 6
percent in coming months.
The
Belarus ruble fell steadily, and at times very rapidly, from early 2011 until
it hit a record low of just over 22,00 to the U.S. dollar in February 2016.
Since then it has been appreciating and was trading at 19,319 to the dollar
today, up 1.74 percent since the beginning of 2017.
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