Belarusian National Bank lowers refinancing rate

On February 19, the National Bank of Belarus decided to lower the refinancing rate from 9 to 8.75% per annum. Head of the main financial institution Pavel Kalaur said that the National Bank measures would not affect inflation.

“A positive factor for us is a slowdown in inflation in Russia in 2019 and low price growth in the European Union. In 2020, inflation in these countries, despite its gradual acceleration, will remain below the target level,” said the head of the National Bank, Pavel Kalaur.

The head of the National Bank also notes that a moderate consumer demand in the country will contimue in 2020. The main financial institution is taking steps to slow down consumer lending. On the other hand, as noted in the address of Pavel Kalaur, uncertainty in inflation growth in Belarus is mainly caused by the lack of efficiency of the real economy.

“The decision (to reduce the refinancing rate – will help to maintain the neutral nature of monetary policy. It will allow to maintain inflation close to the targets in 2020 to ensure price and macroeconomic stability in the medium term,” summed up Pavel Kalaur.