The National Bank of Belarus (NBB) announced its decision to tighten monetary policy in 2014, news agency BelaPAN reports. The Bank will continue securing high interest on rubel deposits.
The tightening of monetary policy is likely part of the authorities’ efforts to meet conditions attached to foreign loans, which Minsk desperately needs amid a widening foreign trade deficit and the need to pay billions of dollars in debts.
The NBB also decided to tighten its approaches to providing loans to the banking sector, discouraging banks from spending more money than they have at their disposal.
According to the press office, the National Bank’s base refinance rate will not be changed in January, while its future changes will depend on inflation and the situation in the financial market.
The press office stressed that the rubel’s exchange rate would continue to be determined by market forces this year, with the National Bank intervening only to prevent sharp fluctuations in the rate.
www.belsat.eu/en, via BelaPAN