Belarus Hikes Refinancing Rate From 22% to 27% To Combat Hyperinflation
Belarus, which recently has been fighting hyperinflation after devaluing its currency by over half, just hiked its central refinancing rate by 5%, from 22% to 27%. We look forward to Comcast's clown channel to pitch Belarussian equities next as the local stock market is poised to outperform every single stock market in the world, complete domestic currency devaluation aside. NB: This is what hyperinflation looks like.
From the google transalted press release:
National Bank refinancing rate increases to 27 percent per annum.
Board of the National Bank decided to further increase the refinancing rate - from 1 September 2011 it increased by 5 percentage points to reach 27 per cent per annum (Judgement of 26.08.2011 ? 352).
Such an increase in refinancing due to the need to tighten monetary policy to stabilize the foreign exchange market and reduce the intensity of price increases.
In addition, increasing the refinancing rate will increase the amount of compensation to depositors of costs associated with inflationary pressures, and will be an additional deterrent to the growth of money supply.
As part of the developed plan to enter the single rate of Belarusian ruble and Social Security National Bank jointly with the Government will continue to conduct a coordinated policy to ensure economic and financial stability in the country.