OREANDA-NEWS. The refinancing rate of the National Bank of Belarus (NBB) may be reduced to 18-20% by the end of the year, NBB Chairwoman Nadezhda Yermakova announced Wednesday.

“We expect that by the end of the year the refinancing rate will stand at 18-20%, taking into account our inflation forecast,” Yermakova said.

The NBB chief reminded that the key rate depends on the level of inflation. In 2014 the inflation is expected to reach 16-17%.

The NBB refinancing rate currently stands at 21.5% (set May 19, 2014). It was the second time since early this year that the NBB cut the refinancing rate. On April 16 the key rate was reduced by 1 percentage point to 22.5% down from 23.5% (set June 10, 2013).

As previously reported, the NBB planned to cut the refinancing rate of down to 14-16% in 2014.

All in all, the refinancing rate was adjusted four times in 2013, eight times in 2012 down to 30% per annum. In 2011 Belarus raised the refinancing rate 12 times from 10.5% to 45% per annum.