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23 October 2015, 18:50

Continuity in Belarus' central bank's monetary policy for 2016

MINSK, 23 October (BelTA) – The National Bank of the Republic of Belarus intends to preserve continuity of the current monetary policy till the end of the year and in 2016, BelTA learned from representatives of the NBRB's Information and Public Relations Department after an expanded participation session of the NBRB Board.

Taking into account the effectiveness of the changes enacted by the National Bank of the Republic of Belarus with regard to the monetary policy, the Board has decided to preserve continuity in implementing the policy till the end of the year and in the next year. Most of the efforts will still be focused on slowing down inflation and reaching one-digit inflation figures in the medium term. The goal will be secured by controlling the money supply. As an intermediate reference point the monetary policy will focus on broad money supply while the increase in the ruble money base will be used as an operational reference point.

Belarus' central bank will also continue implementing a flexible exchange rate policy focused on increasing the share of market mechanisms in the formation of the exchange rate. The interest rate policy will try to prevent money from losing its value while simultaneously reducing the risk premium in deposits and loans.

BelTA has been told that various trends were registered on the Belarusian deposit market in January-September 2015. The measures taken to reformat the existing resources of Belarusian banks on the basis of the central bank's strategy in favor of reducing the share of “hot” deposits were a factor. The stable situation witnessed in the financial sphere in the last few months spurred downward trends on the currency market and the market of deposits and loans. Keeping the trends in mind the National Bank of the Republic of Belarus has been gradually reducing the interest rates on its liquidity regulation instruments.

On the whole, according to the National Bank of the Republic of Belarus, in January-September 2015 fixed-term ruble deposits of individuals rose by Br1.8 trillion. In March-September 2015 the share of deposits, which term varies from one year to three years, rose from 12% to 25% of the total.

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