Beautiful building in belarus

Belarus Monetary Policy December 2018

Belarus: Central Bank keeps rates unchanged in December

At its 19 December meeting, the Board of the National Bank of the Republic of Belarus (NBRB) opted to keep the refinancing rate unchanged at an over one-decade low of 10.0%, in line with analysts’ expectations. The Bank had previously lowered rates at its June meeting, amid record-low inflation.

In its communiqué, the NBRB signaled that a gradual slowdown in domestic demand, coupled with reduced consumer lending, should keep inflation below its 6.0% target rate this year. That said, upside inflationary risks remain over a wage increase implemented in October. Meanwhile, the external-sector backdrop also poses upside risks. These include an expected jump in inflationary pressures in Russia and high external debt, which leaves the currency prone to further devaluation.

Looking ahead, the Bank expects inflation to remain below target and close to 5.0% in 2019-2020. External-sector concerns remain, however, as an expected slowdown of the Russian economy and risks of further market volatility could prompt a further depreciation of the ruble and force policymakers to respond. As it stands, however, most FocusEconomics analysts expect the NBRB to eventually lower rates in 2019.

The next monetary policy meeting is scheduled for 6 February.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest