Belarus might lower its key rate to 13-15% in 2013

MINSK, 12 September (BelTA) – Belarus might reduce its main interest rate to 13-15%, Chairwoman of the Board of the National Bank Nadezhda Yermakova said at the government meeting to review the economy performance in 2012, evaluate the year-end results and the budget and monetary policy forecasts for 2013.

In her words, the key rate will largely depend on the macroeconomic situation including the foreign economic sector and the currency market. “Keeping the current favorable and positive trends in the economy as well as consistently reducing inflation, the main interest rate might go down to 13-15% next year. Its average in this case is estimated at 15-16%,” Nadezhda Yermakova said.

The major goal of the monetary policy in 2013 is to support price stability in the economy. Not least important is to increase the gold and forex reserves to the level that ensures economic security of the country. Gold and forex reserves are projected at $8.7 billion next year taking into account the five-year plans to increase their reserves to the volume of the three-month import with due consideration of its growth.

The exchange rate will remain flexible basing on the demand/supply at the domestic currency market. The National Bank of the Republic of Belarus will carry out interventions both in the currency purchase and sale only to curb short-term sharp fluctuations, Nadezhda Yermakova added.