National Bank outlines monetary policy goals until late 2014

According to the National Bank’s forecasts, BYR/USD exchange rate by late 2014 will be between BYR 10700 – 10800 per USD 1, the discount rate will drop to 20% per annum and interest rates on loans – down to 29% per annum. To implement these plans, the National Bank will continue “gradually” weakening of the Belarusian ruble against the USDollar (by circa BYR 100-120 per month); maintaining the positive yield on ruble deposits; gradually expanding lending to the real sector of the economy (the difference in rates for different sectors of the economy will persist, but the difference in the rates will decrease). The main risks are associated with reduced requirements for borrowers and possible expansion of government programmes which could trigger a rapid growth in lending to the economy and increase pressure on the currency market.