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Belarus to amend monetary policy in 2018

Belarus is planning to change its monetary policy in 2018. Within the October economic forum, the chairman of the National Bank of the Republic of Belarus Pavel Kallaur participated in a discussion dedicated to the issue.

During the discussion he emphasized that the main aim of the National Bank today is the price stability.

“Price stability is the main aim of the National Bank, and it has already been determined in the Bank’s Charter this year. We will be aiming at using monetary policy-inflation targeting”.

Pavel Kallaur had also reminded that the National Bank and the government have a task to reach inflation of no more than 5% by 2020. This year the inflation decreased by a reasonable percentage and what is more, the Bank is planning to decrease the refinancing rate down to 10%.

“The current project of the National Bank presupposes the decrease of the refinancing rate in Belarus down to 10%. Next year we are not planning to decrease the rate by a large percentage, first we must be sure in the stability of the balance of payments and inflation. Our task is to stay stable within the 6% or so. The financial stability consists of economic wellbeing of Belarusian plants. A lot of work is to be done in this direction so that the efficiency of these plants increases. Nevertheless, there is a problem of fiscal risks. Up to this day we have been analyzing of possible fiscal risks. It may seem banal, but huge work should be carried out to increase the efficiency of the plants”.

According to the IMF, the fiscal risks have increased due to the economic problems of certain plants in 2015-2016 and the Fund had before told Belarus about such risks which occur as a result of the state’s cooperation with the state sector.

During the discussion the head of the National Bank of the Republic of Belarus spoke about the current relations with the IMF as well.

“The national Bank is certainly going to continue the dialogue with the IMF, because there are many issues for competent discussions. At the moment Belarus is not talking about some kind of emergency loans, at the moment we do not need them. We want to continue cooperation in accordance with the five-year economic plan we have. Certainly, international organizations as the IMF help us to make decisions, and we are very grateful for that”.

Belarus to amend monetary policy in 2018