National Bank to lower refinance rate to 11.5 percent

January 18, BPN. The National Bank of Belarus has announced its decision to lower its refinance rate from 12 to 11.5 percent on January 23 following “a steady slowdown in inflation.”

It will also lower the overnight loan rate from 13 to 12.5 percent and the overnight deposit rate, from 11 to 10.5 percent.

Improved inflation expectations fueled the inflow of rubels into the banking system, the National Bank said. However, lower bank interest rates and high inflationary expectations curbed savings activity, it added.

The central bank raised the refinance rate last March from 9.25 to 12 percent as rubel depreciated and inflationary pressures mounted amid Russia’s invasion of Ukraine.

In late November 2022, Alaksandr Łukašenka approved new monetary and credit policy guidelines for 2023, projecting a refinance rate in the range of 10 to 11 percent.