Фото: Reform.by
The board of the National Bank of Belarus has decided to cut the refinancing rate by 0.5 percentage points. From June 1, it will stand at 9.25% per annum.
The overnight lending rate will be reduced by the same amount. It will amount to 10.75% per annum.
The refinancing rate affects borrowing costs in the economy as well as deposit rates.
Speaking at the opening of today’s meeting, National Bank Chairman Raman Halouchanka explained the need to revise the rate by citing slowing inflation, the return of GDP growth and improving foreign trade dynamics.
It should be noted that nearly a year ago the National Bank increased the refinancing rate by 0.25 percentage points to 9.75% per annum. The last time the rate stood at 9.25% per annum 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 raised the refinancing rate to 12% per annum. Beginning in January 2023, it started lowering the rate. The reductions continued until the summer of 2023, when the rate reached 9.5% per annum. After that, the indicator remained unchanged for two years.