National Bank Of Belarus Cuts Refinancing Rate

This is the fourth refinancing rate reduction lately.

On 26 April, the National Bank of Belarus announced another reduction of the refinancing rate. From May 2, 2023, it will make 10% per annum, i.e. half a percentage point lower. The Board of the National Bank took such a decision after a meeting on monetary policy.

Accordingly, the rate on overnight loans will be also reduced from May 2, from 11.5% to 11%, as well as the rate on overnight deposits - from 9.5% to 9%.

This is the fourth recent decrease in the refinancing rate.

The National Bank explained the decision to reduce the refinancing rate by the continuing slowdown in inflation.

"As expected, the effect of last year's high base in March 2023 caused the annual increase in consumer prices to fall to 6% against 11.7% in the previous month. Trend inflation declined to 6% after 8.9% a month earlier," the financial regulator explained.

The National Bank predicted a continued trend of slowing annual inflation in the coming months, but only "in the absence of shocks". Only in this case, according to the Belarusian experts, the "low monthly growth rate of prices in the consumer market" will persist.

The National Bank has promised to make the next decisions to reduce or increase the refinancing rate "taking into account the actual and expected inflation dynamics," as well as after the assessment of risks "from internal and external conditions and the reaction of financial markets to them".