The refinance rate remains unchanged at the level of 10.5% per annum
The refinance rate and the interest rates on the liquidity regulation transactions of the National Bank of the Republic of Belarus are preserved at the current level. The corresponding decision was taken on March 14, 2018 based on the results of the quarterly meeting of the Board of the National Bank focused on the monetary policy, at which the current situation and the forecast of development of the economy were considered.
The inflation is within the forecasted path. In February 2018, the consumer prices grew by 4.9% in annual terms. The inflation is expected to be retained at the level close to 5% in annual terms in the subsequent months of the current year.
The economic activity is still recovering. The disinflationary impact of the demand factors is decreasing, primarily, at the expense of the outstripping growth of wages compared with the increase in labour productivity.
High inflationary expectations of the economic entities are preserved. Their level is exceeding the inflation target.
At the beginning of 2018, the forecasted acceleration of the average broad money supply – up to 18.4% in annual terms in February – has been observed.
Thus, the decision to preserve the interest rates reflects the expediency of maintenance of monetary conditions neutrality.
The next quarterly meeting of the Board of the National Bank of the Republic of Belarus focused on the monetary policy will be held in June 2018.