MINSK, 23 June (BelTA) – The decision to raise the refinancing rate was made at a meeting of the Board of the National Bank to discuss the situation in the economy and monetary sector, BelTA learned from the National Bank.
The analysis shows that, despite the continued economic growth, macroeconomic imbalances caused by the widening gap between labor productivity and wage growth have been growing. On the back of growing wages, consumption has increased which led to a significant increase in consumer imports. Income growth increases the creditworthiness of citizens, which, in turn, leads to increased demand for imported durable goods. In January-April consumer imports rose by 14.5%. This also indicates the risks of mounting pressure on the current account balance.
There is a stable liquidity surplus in the banking system and the growing money supply at above 15%. Taking into account the emerging increased trajectory for inflation, the Board of the National Bank considers it necessary to increase the attractiveness of savings in the economy and, as a result, increase the resource base for investment activity.
“In order to mitigate these risks and to stimulate investment activity, the decision was made to increase the refinancing rate by 25 basis points to 9.75% per annum from 25 June 2025, and to raise rates on permanently available liquidity support operations (overnight credit, overnight SWAP) and bilateral liquidity support operations (fixed-rate Lombard loans and SWAP transactions) by 25 basis points to 11.25% per annum," Chairman of the Board Roman Golovchenko said.
“The National Bank will keep its focus on maintaining the availability of investment bank financing, which contributes to sustainable and balanced economic growth of the country. The Board believes that these measures will contribute to strengthening the savings activity of economic entities, reducing the intensity of inflation processes in the country and, accordingly, maintaining the purchasing power of household incomes,” the head of the National Bank added.
The National Bank will continue to carefully analyze the situation in the country’s economy and, if necessary, take appropriate measures in the field of monetary policy.
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