The National Bank of Belarus (NBB) will cut the monetary policy refinancing rate by 50bp to 10.5% on Valentine’s Day, the central bank said on January 30.
The board approved the cut on the back of generally improving economic date. Inflation has fallen to 4.6% as of December and the bank forecasts further falls this year.
Economic growth has also picked up after two years of recession and the country finished last year with $7.3bn in gross international reserves (GIR). The republic expects to tap the international capital markets again this year following the successful placement of a dual-tranche $1.4bn Eurobond last year. Belarus is going to place Eurobonds worth $600mn in the first quarter of 2018, the nation's Finance Minister Vladimir Amarin told journalists on December 18.
Inflation decreased to 4.6% in 2017 from 10.6% in 2016. Core inflation, which fell to 2.5% in 2017 (10% in 2016), made a substantial contribution to the slowdown of the consumer price growth, reports BelTA.
“Further decisions regarding the interest rates will depend on inflation, the development of the situation in the economy and monetary sphere and the likelihood and scale of inflation risks constraining the achievement of the medium-term inflation target,” NBRB's Information and PR Office said.