The rate was approved at a BNR Monetary Policy Committee meeting held on Wednesday, August 12, 2020.
In April 2020, BNR reduced the bank’s lending rate from 5% to 4.5% to help cope with the COVID-19 pandemic and facilitate the country’s economic development.
A statement from the BNR said, “This decision along with other policy measures implemented by the government, will support commercial banks to continue financing business and households.”
The Coronavirus pandemic has slowed the global economy in general, according to the International Monetary Fund (IMF), which estimates that the global economy will grow by -4.9% in 2020, the latest in a series of global economic downturns since 2008. Last year the world economy grew by 2.9%.