Business news

MINSK, 25 October (BelTA) – In January-September positive changes in the economy and the money and credit sphere grew stronger and became a trend. Results of the monetary management policy in January-September 2017 were discussed at an expanded-participation session of the Board of the National Bank of the Republic of Belarus (NBRB) on 25 October, representatives of the Information and Public Relations Office of Belarus’ central bank told BelTA.

It was noted that thanks to the unified macroeconomic policy the Belarusian economy is resuming growth while inflation keeps slowing down, interest rates keep falling, and the de-dollarization campaign continues.

Consumer prices increased way below expectations. Inflation dropped from 10.6% in December 2016 to 4.9% in September 2017 year on year while the annual target stands at 9%. Core inflation totaled 4% year on year in September 2017.

With inflation steadily slowing down, the central bank has been able to persistently reduce the refinancing rate and the rates on instruments designed to regulate the liquidity of commercial banks. The efforts have resulted in a considerable decrease in interest rates on loans and deposits on the market.

Since loans are getting cheaper, the solvent demand of Belarusian corporations is on the rise. Respectively the volume of bank loans primarily in Belarusian rubles is on the rise.

The deposit market in Belarus remains stable. The share of long-term irrevocable deposits rises while the currency structure of the deposits is improving. The changes are believed to reflect the measures taken to reduce the use of U.S. dollars in the Belarusian economy. The changes are having a positive effect on the structure of money supply.

A considerable increase in the gold and foreign reserves has been secured while foreign currency commitments of Belarus’ central bank have been reduced. Belarusians keep selling foreign currency, with foreign currency supply on the market exceeding the demand.

The National Bank of the Republic of Belarus will continue pursuing a balanced monetary policy to reach medium-term inflation goals (at most 5% in 2020) and maintain balanced incentives of economic growth.