National Bank to fulfil forecast on discount rate for 2016 ahead of schedule

As of July 1^st, 2016, the discount rate will be reduced from 22% to 20% per annum. The discount rate will be reduced due to the slowdown of inflationary processes in Belarus. Interest rates on deposits for individuals and legal persons will be reduced too and the maximum interest rate on rouble loans will be set at 30% per annum. If the volume of administrative loans reduces, interest rates are likely to continue to reduce in the banking system and legal persons may step up their interest in rouble loans. The outlook for the discount rate in late 2016 is circa 21-24% per annum and taking into account the upcoming reduction, this parameter will be met ahead of schedule. If oil prices grow and the national currency stabilises, the discount rate is unlikely to increase again this year.