Source: National Bank of the Republic of Belarus –
On July 1, 2020, the refinancing rate will be brought down from 8% to 7.75% per annum; the rate on overnight credits – from 9% to 8.75% per annum; and the rate on overnight deposits – from 7% to 6.75% per annum.
The corresponding decisions were taken by the Board of the National Bank following the results of the additional meeting on the monetary policy issues on June 22, 2020.
Inflation is slowing down at higher rates than it was expected. In May 2020, consumer prices went up in annual terms by 4.9%, compared with 5.4% in April 2020. Annual core inflation decelerated to 3.9% (4.5% in April 2020).
A constraining impact of disinflationary factors is stronger than it was forecasted. Inflationary processes in the countries being trade partners of Belarus are slowing down at the higher rates. Against this background, the foreign central banks are actively lowering their key rates.
Under these conditions, the National Bank continued to soften the monetary policy as well. Maintenance of the moderately soft monetary conditions makes it possible to preserve the acceptable level of price and financial stability.