From 1 July 2020, the refinance rate is reduced from 8 to 7.75% per annum, the overnight credit rate from 9 to 8.75% per annum, and the overnight deposit rate from 7 to 6.75% per annum. According to the press service of the National Bank, this decision was taken by the board of the National Bank following the additional meeting on monetary policy on June 22, 2020.
- Inflation is slowing down faster than expected. In May 2020, the growth of consumer prices amounted to 4.9% in annual terms against 5.4% in April 2020. Annual core inflation slowed down to 3.9% (4.5% in April 2020)," it was reported.
The deterrent effect of disinflationary factors is stronger than predicted, the regulator notes. Inflation processes in the countries - trading partners of Belarus - slow down at a faster pace. Against this background, foreign central banks are actively reducing their key rates.
- Under these conditions, the National Bank has also continued monetary policy easing. Maintenance of moderately soft monetary conditions allows maintaining an acceptable level of price and financial stability.
Recall that the next meeting of the National Bank at the refinancing rate is scheduled only for August 12, 2020. The previous one was held on May 13, when the regulator cut the rate from 8.75 to 8% per annum. Even with this reduction, there were concerns that it might put pressure on the Belarusian ruble rate. But on Friday, June 19, the president demanded to lower the rate in June.
recalled that the Prime Minister and the head of the National Bank were responsible for GDP and income growth, as well as for price control. "And from now on, the chairman of the National Bank is chief aide to the Prime Minister for the payment of wages and work of enterprises," added Alexander Lukashenko.
"Take a look at the refinancing rate, too," he said. - All countries are actively reducing it, trying to revive their economy. We have the consumer price index in the parameters of the socio-economic development forecast, so the cost of bank credit should be reduced more actively. I'm waiting for the decisions of the government and the National Bank, without delay, until the end of June.