MINSK, 10 July (BelTA) – The inflation-driving factors are weakening and the 5% inflation target remains in place, Deputy Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Sergei Kalechits told the media, BelTA has learned.
“Like we said before, in H1 we expected that the inflation would exceed the target by the end of the year. But we see that the factors, which pushed the inflation, have been weakening in recent months. Therefore, we believe that we will be close to the target of 5%,” Sergei Kalechits said.
According to him, the inflation was driven by the factors related to agricultural production, growth of productivity lagging behind wages and also external factors.
When asked about the possibility of raising the refinancing rate with regard to the inflation rate, Sergei Kalechits noted that when considering the rate the central bank assesses the entire range of factors and forecasts. “The decision to change the rate or keep it in place relies on the balance of factors. These factors change, we evaluate them and make appropriate decision,” he said.
As BelTA reported earlier, the rate of inflation in Belarus was 0.3% in May 2019, 6.2% in May 2019 over May 2018. The inflation target set out by the National Bank is 5% by the end of the year (in December 2019 over December 2018).
The refinancing rate currently stands at 10%. The next session of the Board of the National Bank of the Republic to discuss monetary management policy has been scheduled for 7 August.More about Economy