MINSK, 19 September (BelTA) – The National Bank of the Republic of Belarus will keep the refinancing rate and interest rates on operations designed to regulate liquidity unchanged. The decision was made by the NBRB Board after a session held on 19 September to discuss monetary management, representatives of the NBRB Information and Public Relations Office told BelTA.
According to Belarus' central bank, the annual inflation matches the forecasts. In the future prices are expected to grow by about 5% in line with the forecasts for the 2019-2020 period. Nothing in the domestic economy seems to be able to prevent it. Worsening foreign trade conditions and the increased uncertainty about their development in the future represent certain pro-inflation risks.
In August 2018 consumer prices rose by 5% year-on-year. This year's inflation is expected to be close to 5.5% while the target has been set at 6% at most.
Domestic demand has a moderate effect on price dynamics. Inflation pressure from the external sector has increased somewhat primarily due to the expected acceleration of inflation processes in Russia.
In order to keep inflation pressure from the external sector at bay and hit the inflation target, it is necessary to preserve the disinflationary nature of monetary conditions.
By keeping the refinancing rate unchanged, the central bank intends to support the monetary conditions, which will put the actual inflation close to the 5% target in 2019-2020.
The next NBRB Board session to discuss monetary management is scheduled for 19 December.
