National Bank to raise refinance rate to 27 percent

The National Bank of Belarus (NBB) has decided to raise its base refinance rate from 22 to 27 percent on September 1 in response to high inflation.

This will be the eighth increase in the NBB`s refinance rate this year.

On August 17, the rate was increased from 20 to 22 percent.

The 2011 Monetary Policy Guidelines, approved by a November 11, 2010 presidential edict, said that the NBB`s base refinance rate should be between eight and 10 percent at the end of the year.

However, the refinance rate was raised from 10.5 to 12 percent on March 16, to 13 percent on April 20, to 14 percent on May 18, to 16 percent on June 1, to 18 percent on June 22 and to 20 percent on July 11.

Last year the NBB lowered its refinance rate six times, from 13.5 to 10.5 percent. // BelaPAN