18 Jan 2023 18:51

National Bank of Belarus to lower refi rate from 12% to 11.5% on Jan 23

MINSK. Jan 18 (Interfax) - The National Bank of Belarus will lower the refinancing rate from 12% to 11.5% per annum on January 23.

The rate on overnight loans will be lowered from 13% to 12.5%, with the rate on overnight deposits falling from 11% to 10.5% per annum, the regulator said in a press release, citing a decision by its management board.

"In recent months, there has been a sustained slowdown in inflation. In December 2022, the annual increase in consumer prices amounted to 12.8%, the aggregate trend inflation indicator was 10.2% per annum," it said.

According to the surveys, the consumer inflation expectations among households in the next 12 months dropped to 12.6% in December 2022 from 14% in September 2022.

Savings activity remains restrained, including due to increased inflation expectations, hence the decision to lower the rate by only 0.5 basis points.

Future decisions on the refinancing rate will take into account the actual and expected inflation rates, internal and external risks and the reaction of financial markets to them.