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Belarus plans to cut refinancing rate, inflation in 2013

As of the end of November 2012, Belarus’ inflation exceeded 20 percent

MINSK, December 26 (Itar-Tass) —— The Chairperson of the Board of the National Bank of Belarus, Nadezhda Yermakova is confident that it is rather realistic to maintain the republic’s average refinancing rate within 15-16 percent per annum, as it was planned for 2013.

“As for the targeted level of the refinancing rate for 2013, it is rather realistic, if the inflation processes continue slowing down, the situation on the currency market remains stable both abroad and in the republic’s macroeconomic sector,” Yermakova told on-line conference on Wednesday.

“In order to achieve the goal in 2013, the National Bank will use all its instruments of the monetary and credit policy,” she said.

Yermakova also said that the refinancing rate, which now amounts to 30 percent per annum, will remain unchanged before the end of this year.

Besides, the National Bank’s head promised that there will be no jumps in the Belarusian rouble exchange rate in 2013. “Herewith, I should repeat that the exchange rate is formed proceeding from the sales of foreign currencies on the domestic market,” she noted, adding, “With this in mind, everyone should agree with the fact that a certain variability of the exchange rate is a normal market’s process.”

Touching upon the republic’s inflation forecasts for the next year, Yermakova predicted the year-to year decline up to 12 percent. “The National Bank’s monetary and credit policy and the government’s economic policy will be aimed at the achievement of this goal,” she said.

As of the end of November 2012, Belarus’ inflation exceeded 20 percent. In 2011, the republic’s consumer prices for goods and services more than doubled.