Opinions & Interviews

Belarus’ central bank aims for 4-5% inflation target in medium term

Pavel Kallaur. An archive photo

MINSK, 12 February (BelTA) – The inflation target in the medium term may be set within the range between 4% and 5%, BelTA learned from Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Pavel Kallaur on 12 February.

The official said: “I am deeply convinced that we should gradually move towards a lower inflation target while taking into account structural problems. In the near future the inflation target may be 4% or there may be an intermediate target of 4.5%. We will reveal what we and the government have decided on later on. Nevertheless, it seems to me that the range between 4% and 5% is the range that matches the state of our economy for the next five years.”

As for the refinancing rate, it depends on many factors. “If there is less uncertainty in the world, if we see fewer risks not only from enterprises but country risks as well, there is no doubt there is some potential for reduction and it could be implemented gradually,” the official said.

BelTA reported earlier that inflation in Belarus is expected not to exceed 5% in 2020. The central bank’s refinancing rate will be reduced from 9% to 8.75% per annum as from 19 February. The interest rate on overnight loans will drop from 10% to 9.75% per annum, with the interest rate on overnight deposits to go down from 8% to 7.75% per annum.

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