The Management Board of the National Bank decided to shift the refinancing rate to 15% from 14% and leave other parameters of the interest rate corridor unchanged from 9 June 2008. At the same time, the Board decided to increase the reserve requirement in manat and foreign currency to 12% from 10% from 16 July 2008.
The press-service of the National Bank advises that amid strong economic growth, sharp rise in and use of export revenues, and high rate expansion of capital and consumer expenses stipulate considerable changes to macroeconomic rebalancing and natural rise in prices. At the same time, the effect of global factors on domestic macroeconomic rebalancing is increasing. On this backdrop, real interest rates on loans and deposits tend to declining with natural overheating of the economy. These factors necessitate quick response of the monetary policy to macroeconomic developments. Accordingly, the National Bank provides consistent corrections to the monetary policy. Already in the current year the Bank took a number of important decisions regarding the monetary and exchange rate policy. Next decisions by the National Bank to review the parameters of monetary policy tools should be assessed as a critical step of the kind.