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20 May 2020, 09:59

Refinancing rate down to 8% in Belarus

An archive photo
An archive photo

MINSK, 20 May (BelTA) – The refinancing rate went down from 8.75% to 8% on 20 May. The overnight lending rate was cut from 9.75% to 9% per annum and the overnight deposit rate - from 7.75% to 7% per annum, BelTA learned from the bank's information and public relations department.

Chairman of the Board of the National Bank of the Republic of Belarus Pavel Kallaur explained that this decision is based on the revised economic forecasts and monetary policy for 2020 and 2021. The decision was also prompted by the considerable changes that have recently taken place in the world and Belarus.

According to the estimates, the current acceleration of inflation is temporary. In the coming months the disinflationary effect on the part of cumulative demand will become more pronounced. As a result, the price growth will decelerate to the level of the late 2019. By the end of 2020, the inflation rate is expected to stay within 5-6%.

“In the given economic conditions, the reduction of the refinancing rate to 8% will help preserve the acceptable level of price stability and will contribute to maintaining financial stability. By easing the loan burden and increasing the affordability of borrowed resources for the domestic business and households, the bank will be able to encourage consumer demand and investment activity. This will enable Belarusian companies offering products and services to recover faster after the removal of lockdown across the world,” Pavel Kallaur said.

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