National Bank of Belarus lowers refi rate 50 bps to 9.25%

MOSCOW. May 20 (Interfax) - The National Bank of Belarus (NBB) on Wednesday decided to lower the refinancing rate by 50 basis points to 9.25% from the 9.75% per annum in effect since June 25, 2025, the NBB press service said.

The new rate will take effect on June 1. The overnight loan rate was also lowered 50 bpd to 10.75% per annum.

"Trends observed recently in the economy and monetary sphere are characterized by fairly stable positive dynamics, paving the way for us to adjust our policy, primarily monetary policy. Macroeconomic indicators are showing a stable trend. The slowdown in inflation, which began in the second half of 2025, continues," NBB Governor Roman Golovchenko said in a video commentary distributed by the press service.

"In April this year, annual inflation was 5.4%, substantially lower than last year's level. GDP is now on a positive trajectory. Foreign trade indicators are improving, and the domestic currency market is stable, he said.

Golovchenko also said there was a high propensity for household savings, with local currency term deposits rising 40.5% year-on-year. Banks are providing the necessary credit support to the economy; as of May 1 - their claims on the economy were up 10.9% year-on-year as of May 1.

Dmitry Murin, head of the NBB's Monetary Policy and Economic Analysis Department, said on May 7 that the regulator planned to lower the refi rate 25 or 50 bps in June. "Fundamental economic factors that previously had a strong pro-inflationary inflationary impact both domestically and internationally, primarily import inflation, are gradually weakening," he said.

Last year, as inflation accelerated, the NBB raised the refinancing rate for the first time in two years, effective June 25, 2025, from 9.5% to 9.75% per annum.

The NBB plans to keep inflation at no more than 7% in 2026.

In 2025, inflation in the country reached 6.8%, above the NBB's target of no more than 5%, compared to 5.2% in 2024 and 5.8% in 2023.