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Belarus' central bank to reduce refinancing rate to 11% on 1 March

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MINSK, 23 February (BelTA) – The National Bank of Belarus will reduce the refinancing rate from 11.5% to 11% per annum on 1 March 2023. The corresponding decision was made by the Board of the National Bank following the meeting on monetary policy, BelTA learned from the National Bank.

The interest rate on overnight loans will be decreased from 12.5% to 12%, with the interest rate on overnight deposits down from 10.5% to 10% per annum.

“Inflation continues to slow down as expected. Annual inflation fell to 12% in January 2023 from 12.8% in December 2022. Trend inflation fell to 9.2% from 10.2%, respectively. The rate of increase in consumer prices has been at a low level in recent months. This contributes to a further slowdown in annual inflation, which is estimated to decline to single digits by the end of the first quarter of 2023,” the bank said.

The inflow of rubles into the banking system remained stable in January 2023. At the same time, savings activity remains restrained. There is also an accelerated growth of the liquid component of money supply, which may affect the dynamics of inflation slowdown.

While making decisions on the refinancing rate in the future, the National Bank will take into account the actual and expected inflation rates, internal and external risks and the reaction of financial markets to them.

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