Updated at 14:03,27-06-2022

National Bank: Interest Rates - Philosophical Question


Deputy Chairman of the National Bank Sergei Dubkov believes that interest rates are "a philosophical question".

According to him, "for those, keeping their money on deposit, they are always low, while for those, taking credits - always high". Therefore, he believes banks should find "that narrow line that would satisfy both the first and second client, and create stable conditions for the functioning of the bank."

Sergei Dubkov notes that the National Bank encourages people to save in domestic currency through interest rates on deposits in Belarusian rubles, which are higher than deposits in foreign currency. "It's a deliberate policy of the National Bank within the framework of the processes in the financial market of the country and the world," he said, reports BelTA.

According to the deputy chairman of the National Bank, Belarus keeps a steady tendency towards the growth of ruble and foreign currency deposits in both relative and absolute terms. The flow of deposits from one currency into another is minimal. "That is the population is still confident in the banking system. So the National Bank and the other banks of the country should preserve and strengthen their trust," said Sergei Dubkov.

"The professionalism of the bank is proved by its ability to meet the needs and agree with those who’ve brought the money and got the credit," he stressed.

December 12, the National Bank increased the refinancing rate from 40% to 45%. At the same time it raised the interest rates on operations of bank liquidity support - from 65% to 70% per annum.