Refinancing rate to be lowered in Belarus since March 1

On March 1, 2023, the refinancing rate is going to be reduced from 11.5% to 11% per annum. The relevant decision was taken by the Board of the National Bank following the monetary policy meeting, BelTA informs with reference to the National Bank.

Also, the rate on overnight loans is reduced from 12.5% to 12% per annum, while the rate on overnight deposits from 10.5% to 10% per annum.

"The inflationary processes, as expected, continue to slow. The annual inflation fell to 12% in January 2023 from 12.8% in December 2022. The rate of increase in consumer prices has been at low levels in recent months. This contributes to a further slowdown in annual inflation," - told the bank.

In addition, it is reported that in January 2023 there was an inflow of ruble funds in banks. However, the savings process remains subdued. At the same time there is an accelerated growth in the liquid component of the money supply, which may affect the dynamics of slowing inflation.

The National Bank will take the next decisions on the refinancing rate, taking into account the actual and expected inflation dynamics, as well as assessing risks from internal and external conditions and the financial markets' reaction to them.