Press release

The National Bank Acknowledges the Strengthening of Positive Changes in the Economy and Monetary Area

According to the results obtained in January – September 2017, the National Bank of the Republic of Belarus acknowledges the strengthening of positive changes in the economy and monetary sphere. Results of the monetary policy implementation over nine months of the current year were considered on October 25 at the enlarged meeting of the Board of the National Bank.

In the course of the meeting it was stated that as a result of implementation of the single macroeconomic policy in Belarus the economic growth is being resumed against the background of decelerating inflation, declining interest rates and continuing dedollarization process.

Consumer prices are growing at the significantly lower rates than the forecasted ones – inflation dropped from 10.6% in December 2016 to 4.9% in September 2017 in annual terms, with the target annual indicator being no less than 9%. Core inflation totaled 4% in annual terms in September.

The stable slowing-down of inflation made it possible for the National Bank to gradually reduce the refinance rate and the rates on banks’ liquidity regulation instruments in the current year, leading to considerable reduction of interest rates in the credit and deposit market.

As the price of borrowing is declining and business activity is recovering, the organizations’ effective demand and, respectively, the volumes of banking lending, mainly in the Belarusian rubles, are growing.

Stability is maintained in the deposit market, with the share of long-term irrevocable deposits being growing and the foreign exchange structure of deposits being improved, that reflects the measures being taken as part of the economy dedollarization and makes a positive impact on the structure of money supply.

A significant growth of gold and foreign exchange reserves is ensured, with the National Bank’s foreign exchange liabilities being reduced. Net foreign exchange supply, which was formed by households, is being preserved, on the whole, in the domestic foreign exchange market.

The National Bank will continue to implement weighted monetary policy aimed at attaining the medium-term inflation target (no more than 5% in 2020) and maintaining the well-balanced incentives of economic growth.