Belarus Interest Rate

The National Bank of Belarus cut its benchmark refinancing rate by 50bps to 11.5% on January 18th, 2023, after holding the rate steady since the start of its joint invasion of Ukraine with Russia in late February. It was the first interest rate cut since June 2020, with the bank’s board stating that inflation has shown a steady slowdown in recent months. The Board noted that inflation expectations have also improved, largely due to the inflow of rubles into the Belarussian banking system. The latest data showed that inflation in the country was at 12.8% in December, well below the seven-year high of 18.1% touched in July. On the growth front, Belarussian Prime Minister Golovchenko stated the economy is expected to have contracted 4% in 2022 amid sweeping sanctions from the West.