MINSK, 20 December (BelTA) – Belarus' refinancing rate will remain at 9-10% by the end of 2019 given there are no external shocks, Chairman of the Board of the National Bank of the Republic of Belarus Pavel Kallaur told the media on 20 December, BelTA has learned.
“Given there are no significant shocks, the refinancing rate will remain at 9–10% per annum by the end of 2019. Interest rates on new loans will be kept within 10-11.25% per annum,” said Pavel Kallaur.
According to the National Bank, interest rates on new market loans in the national currency will be about 11% per annum by the end of 2018. This is a historic low, the head of the National Bank said.
The central bank is planning to reject recommendations to place a cap on interest rates in the credit and deposit market. At the same time, it will keep the regulatory control over the generation of increased risks by banks, Pavel Kallaur said. It will be executed via the system of macroprudential instruments.
In terms of price stability, the inflation target for 2019 is no more than 5%. To achieve this, the National Bank will continue the monetary targeting policy.
The target for the country's gold and forex reserves for 2019 is $7.1 billion.
As for the exchange of the Belarusian ruble in 2019, Pavel Kallaur stressed that it would be fair.
“Low inflation and a stable financial sector are key conditions for sustainable economic growth, the basis for building up trust in the current economic policy. Therefore, the National Bank will be focused on achieving two goals, i.e. to maintain price and financial stability," said Pavel Kallaur.