A resolution by the National Bank of Belarus lowering the refinancing rate came into force today.
From June 1, the refinancing rate stands at 9.25% per year. The overnight lending rate has been set at 10.75% per year. Both rates were reduced by 0.5 percentage points.
The refinancing rate affects borrowing costs across the economy as well as deposit interest rates. It also influences government spending on state support programmes, as compensation for all or part of interest payments on loans to enterprises is often linked to the refinancing rate.
Nearly a year ago, the National Bank raised the refinancing rate by 0.25 percentage points to 9.75% per year. The last time the rate stood at 9.25% was in 2021.
At the end of February 2022, following the start of Russia’s full-scale war against Ukraine, the National Bank of Belarus increased the refinancing rate to 12% per year. It began cutting the rate in January 2023. The reduction continued until the summer of 2023, when the rate reached 9.5% per year. After that, it remained unchanged for two years.
From June 1, the calculated standard risk values for loans and deposits were also reduced. This is another instrument through which the National Bank influences interest rates.
