Bank revealed plans for adjustments in deposit interest rates
Here's an informal, engaging version of the article:
Hey there! Guess what? The National Bank thinks the gap between short-term and long-term deposit rates is gonna keep growing. Alexander Egorov, one of the bigwigs at the bank, spilled the beans in a chat with "First Information".
"The main thing we're seeing right now is the difference in rates for long and short deposits," Egorov said.
Long-term Deposits Are A-OK
Short-term deposits are expected to take a dip and get back to the National Bank's interest rate corridor soon, according to Egorov. But the current level of long-term deposits at the National Bank is just fine, he explained. It ensures that people keep stashing their cash in national currency deposits, especially the long-term ones.
Non-Withdrawable Deposits Make Banking Happening
About 84% of the money people have stored in Belarus' financial institutions are what's called non-withdrawable deposits with terms longer than a year. These deposits form a rock-solid base that lets banks get involved in long-term investment lending, which is all about building the economy for the long haul.
Previously, the head honcho of the National Bank, Roman Golovchenko, shared some tips on how Belarusians can make the most of their savings.
Using some math tricks, he showed folks that keeping their cash in Belarusian rubles is the smartest move for keeping their money safe and sound. 😎
Bonus Insights:
While the National Bank hasn't been super specific about the exact rates, their policy rate trends and expert predictions give us some idea of what's coming up.
- Over the last decade, the policy rate has gone from a whopping 20% to a more manageable 9.5%.
- Experts think the rate might dip a little in the near future, but it's likely to remain moderate for the short to medium term.
- Lower rates can make people less keen on saving in domestic currency if there are better alternatives out there. But they also keep credit growth in check and prevent inflation from running wild.
- If the deposit rates aren't much lower than the policy rate, banks might not be as motivated to attract local deposits unless the risk is high.
But remember, it's all about keeping inflation in check for a stable economy! 💸💰📈
- Alexander Egorov suggests that long-term deposits are currently acceptable, as they contribute to people keeping their money in national currency deposits, particularly long-term ones.
- The high proportion of non-withdrawable deposits in Belarus' financial institutions enables banks to engage in long-term investment lending, which plays a crucial role in economy development for the long term.
