Loans and deposits average rates in Belarus experienced a decrease by this extent in the month of July.
In a recent announcement, the National Bank of Belarus revealed that interest rates in the country's credit-deposit market saw a decline in July. This trend reflects an easing of monetary conditions, contributing to maintaining overheated domestic demand rather than quickly balancing it.
The average rate on time deposits of legal entities in Belarusian rubles decreased by 1.18 percentage points to 8.93% per annum in July. This drop was mirrored in demand deposits, with the average rate falling by 1.17 percentage points to 5.25% per annum for legal entities, and a 0.62 percentage point decrease for individuals, bringing the rate to 5.19% per annum.
For loans, the average rate for legal entities decreased by 0.03 percentage points to 12.24% per annum, while for individuals, it decreased by 0.14 percentage points to 11% per annum. The average rate on new time deposits of legal entities fell by 1.04 percentage points to 5.78% per annum, and for individuals, it dropped to 12.60% per annum.
Interestingly, the average rate on new time deposits of legal entities is lower than the average rate on time deposits of individuals in Belarus. Similarly, the average rate on demand deposits of legal entities is lower than the average rate on demand deposits of individuals in Belarus.
The National Bank of Belarus has also reported a decrease in the average rate on new time deposits of individuals in Belarusian rubles, which stood at 12.09% per annum in July, a decrease of 0.08 percentage points compared to the previous month.
This shift towards easier monetary policy is indicated by the National Bank's increasing discretion and risk in monetary policy management, as highlighted by recent reports[3][5]. This contrasts with a more restrictive stance earlier in the year and highlights a trend toward monetary ease in the second half of 2025.
In the second quarter of 2025, interest rates decreased slightly from the previous quarter, moving from modestly above neutral levels in Q1 to below neutral in Q2. This shift is linked to the National Bank prioritizing credit support to the economy over price stability, causing monetary conditions to become moderately loose. The ruble is assessed to be near equilibrium in Q2 after being moderately undervalued earlier in the year[3][5].
This easing of monetary conditions is expected to continue, as the National Bank of Belarus's July stance is characterized by lower real interest rates on loans and deposits, eased monetary policy that supports economic activity despite rising inflation, and increased discretion and risk in monetary policy management by the National Bank[3][5].
The decline in interest rates in the credit-deposit market, as seen in the decrease in rates for time deposits, demand deposits, and loans, indicates a trend of easing monetary conditions in Belarus. Moreover, the National Bank of Belarus reported a decrease in the average rate on new time deposits for both legal entities and individuals, suggesting an ongoing easing of monetary policy.
