NBB raises refinancing rate by 0.75 pp to 9.25% per annum Jul 21, 2021
MINSK, Jul 15 - PrimePress. The National Bank of Belarus (NBB) will raise on July 21, 2021 the refinancing rate by 0.75 percentage points to 9.25% per annum by a decision of the NBB Board made on July 15, 2021 at the meeting on monetary policy, the NBB reports.<br> <br> Also, the National Bank will raise by 0.75 p.p. the rate on overnight loans to 10.25% per annum and the rate on overnight deposits to 8.25% per annum.<br> <br> “As expected, annual consumer prices growth accelerated in the second quarter of 2021. Inflationary processes intensified largely due to significant pro-inflationary external factors. Growth of prices in the global commodity markets (including energy, construction materials and foods) accelerated as a result of higher consumer demand against the backdrop of continuing difficulties in production and logistics. Economic activity is recovering worldwide at a faster pace than most international experts expected,” reads the report.<br> <br> High inflation expectations among economic entities contribute to consumer price growth in Belarus. The strengthening of the Belarusian ruble in the second quarter of 2021 and controlled money supply help curb inflation in the country. Given both the external and internal factors, consumer prices rose by 9.9% in annual terms in June 2021, says the National Bank.<br> <br> The NBB expects that inflation in the countries that are trading partner of Belarus will slow down, considering the restoration of the supply and demand balance in the world commodity markets, including in the market of foods with the new crops coming. The Bank of Russia has decided to raise the key rate, which is supposed to de-escalate inflationary processes in the Russian Federation and slow growth of consumer prices down to the target in the second half of 2022.<br> <br> “Taking into account the above factors and the need to minimize pro-inflationary risks, the National Bank decided to raise the refinancing rate by 75 basis points. The National Bank will still be guided by the need to maintain price stability under the pressure of external and internal factors that affect the actual and expected inflation and its deviation from the benchmark,” the NBB says.<br> <br> Previously, the National Bank raised the refinancing rate on April 21, 2021 by 0.75 percentage points to 8.5%. Before that, the rate was lowered on July 1, 2020 by 0.25 p.p. to 7.75% per annum; on May 20, 2020 by 0.75 p.p. to 8% per annum; on February 19, 2020 by 0.25 p.p. to 8.75% per annum; on November 20, 2019 by 0.5 p.p. to 9% per annum; on August 14, 2019 by 0.5 p.p. to 9.5% per annum; on June 27, 2018 by 0.5 p.p. to 10% per annum; on February 14, 2018 by 0.5 p.p. to 10.5% per annum. In 2017, the National Bank lowered the refinancing rate eight times by 7 p.p. in total to 11% per annum. End<br> <br>
2021-07-15
Primepress
NBB raises refinancing rate by 0.75 pp to 9.25% per annum Jul 21, 2021
Also, the National Bank will raise by 0.75 p.p. the rate on overnight loans to 10.25% per annum and the rate on overnight deposits to 8.25% per annum.
“As expected, annual consumer prices growth accelerated in the second quarter of 2021. Inflationary processes intensified largely due to significant pro-inflationary external factors. Growth of prices in the global commodity markets (including energy, construction materials and foods) accelerated as a result of higher consumer demand against the backdrop of continuing difficulties in production and logistics. Economic activity is recovering worldwide at a faster pace than most international experts expected,” reads the report.
High inflation expectations among economic entities contribute to consumer price growth in Belarus. The strengthening of the Belarusian ruble in the second quarter of 2021 and controlled money supply help curb inflation in the country. Given both the external and internal factors, consumer prices rose by 9.9% in annual terms in June 2021, says the National Bank.
The NBB expects that inflation in the countries that are trading partner of Belarus will slow down, considering the restoration of the supply and demand balance in the world commodity markets, including in the market of foods with the new crops coming. The Bank of Russia has decided to raise the key rate, which is supposed to de-escalate inflationary processes in the Russian Federation and slow growth of consumer prices down to the target in the second half of 2022.
“Taking into account the above factors and the need to minimize pro-inflationary risks, the National Bank decided to raise the refinancing rate by 75 basis points. The National Bank will still be guided by the need to maintain price stability under the pressure of external and internal factors that affect the actual and expected inflation and its deviation from the benchmark,” the NBB says.
Previously, the National Bank raised the refinancing rate on April 21, 2021 by 0.75 percentage points to 8.5%. Before that, the rate was lowered on July 1, 2020 by 0.25 p.p. to 7.75% per annum; on May 20, 2020 by 0.75 p.p. to 8% per annum; on February 19, 2020 by 0.25 p.p. to 8.75% per annum; on November 20, 2019 by 0.5 p.p. to 9% per annum; on August 14, 2019 by 0.5 p.p. to 9.5% per annum; on June 27, 2018 by 0.5 p.p. to 10% per annum; on February 14, 2018 by 0.5 p.p. to 10.5% per annum. In 2017, the National Bank lowered the refinancing rate eight times by 7 p.p. in total to 11% per annum. End