Belarus' refinancing rate down to 10.5%

The National Bank of Belarus cut down the refinancing rate to 10.5% per annum on 3 April 2023, BelTA learned from the National Bank.

The refinancing rate was reduced from 11% to 10.5% per annum. The interest rate on overnight loans decreased from 12% to 11.5%, with the interest rate on overnight deposits down from 10% to 9.5% per annum. The corresponding decision was adopted by the Board of the National Bank on 24 March.

“Inflation is within the projected parameters. In February 2023 the annual consumer price growth slowed down to 11.7%, down from 12% a month earlier. Trend inflation is also slowing down. In February 2023 it was 8.9%, down from 9.2% a month prior. With the annual inflation rate falling back into single digits in March 2023, the consumer price growth is expected to continue to slow down in the second quarter of 2023,” the National Bank said.

It is also reported that there are still a number of proinflationary risks, the dynamics of which requires increased attention. Among them are inflation expectations, the intensity of savings in the national currency, and the accelerated growth of the active component of the money supply. “Currently, these risks are assessed as moderate,” the National Bank emphasized.

The National Bank will make the next decisions on the refinancing rate, taking into account the actual and expected inflation trends, as well as risks from internal and external conditions and the response of financial markets to them.