Page 13 - BELRptNov18

4.2 Inflation
The board of the National Bank of Belarus (NBB) has confirmed its recent estimates that the 2018 annual inflation in the country will stay below projections and coming at about 6% this year.
In September, the annual increase in consumer prices totalled 5.6%. In January-September, the central bank's monetary management policy was aimed at supporting macroeconomic balance and slowing down inflation, the NBB said in a statement last week.
Money supply dynamics had a restraining effect on inflation processes in Belarus. The dynamics helped keep up business and investment activities as the volume of bank loans increased to match the solvent demand on the part of corporations and individuals.
The National Bank of Belarus (NBB) expects annual inflation of about 5.5% in 2019 , giving all the risks in the external economy and the steps already taken by the government, according to the regulator's deputy governor Dmitry Kalechits.
The official added that the forecast documents for 2019 have been drawn up. "De facto they take into account all possible risks and scenarios for development of the international economy and Belarusian economy. The inflation is projected at 5%," state news agency BELTA quoted Kalechits as saying. "We expect that the tools and mechanisms at the disposal of the government and the NBB will help us achieve this goal."
In September, the NBB kept its key refinancing rate unchanged at 10% . The move followed June's cut of the NBB's key refinancing rate from 10.5% to 10%. The central bank attributed the move to the fact that "projections concerning the situation in economy, foreign trade, the currency market, and the deposit market indicate that the emerging money and credit conditions will keep inflation within the targeted range".
According to official data, consumer prices in Belarus rose by 0.8% month-on-month (3.7% YTD) in September.
13 BELARUS Country Report November 2018 www.intellinews.com