The National Bank of Belarus (NBB) will reduce its benchmark interest rate by 1 percentage point (pp) to 11.5% on September 13, according to a statement published by the regulator on August 23.
The interest rate on standing and bilateral operations designed to keep up the current liquidity of Belarusian banks will reduce from 14% to 15% per annum, the central bank said.
The central bank attributed the move to the fact that inflation remains low in the country - the consumer price growth is projected to stay in August below 6% in annual terms, the core inflation at about 5% in annual terms.
"The persistent moderate growth of consumer prices (6-6.5%) reflects [...] a high likelihood of the inflation remaining at this level in the coming months," the NBB added. "In the medium term, there are no significant risks to the accelerated price growth from the monetary factors, current account balance and foreign exchange market."
On July 19, the regulator reduced its benchmark interest rate by 1 pp to 12%. The central bank attributed the move to the fact that inflation remains low in the country, estimated in June at 6.2% in in annual terms, while core inflation will be at about 5.3% in annual terms. A moderate growth rate of the money supply, positive changes in the balance of payments, and the stability of the currency market add to these positive tendency, according to the NBB.