Belarus should minimize inflation risks while increasing wage rate

MINSK, 29 June (BelTA) – Belarus should take measures to minimize inflation risks while raising the wage rate, Chairperson of the Board of the National Bank of Belarus Nadezhda Yermakova told reporters on 29 June, BelTA has learnt. Speaking about the impact of the planned wage rate increase on the inflation rate in Belarus, Nadezhda Yermakova said, “We have concerns about that, and it is natural, the amount of money in circulation will rise”. She emphasized that this money should be invested somewhere. To this end, Belarus should offer goods and services, first of all, domestic products; otherwise this will create good preconditions for inflation and naturally additional demand for foreign currency. “Therefore, producers, executives and the National Bank should do their utmost to find ways to withdraw this money. This can be done via a high interest rate on deposits; in this case the reduction in the refinancing rate does not fit into these plans. But the number one thing is to encourage people not only to deposit money, but also to invest it into goods and services that will be produced by our economy and our companies,” Nadezhda Yermakova emphasized. The National Bank’ instruments to curb inflation are high interest rates that will prevent credit expansion, she added.

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