Central bank: No imbalances in Belarus' macroeconomic policy

“This is reflected by the dynamic of monetary indicators that are generally falling in line with the forecast and correspond to the macroeconomic situation. The year-on-year growth of the average broad money supply is 15.1% (6.3% if fluctuations of the Belarusian ruble exchange rate are excluded),” Sergei Kalechits said.

Over the past five years the National Bank in collaboration with the government has been pursuing a policy that seeks to maintain price stability and a macroeconomic balance. In line with this policy, in 2015 Belarus switched to monetary targeting and flexible price formation in its monetary policy. “Thus, it helped bolster macroeconomic stability that allows loosening the policy without threatening the stability,” he added.

When asked whether a looser monetary policy is justified and whether there is a risk of a financial crisis like the ones in 2011 and in 2014, Sergei Kalechits emphasized: “Pursuing a counter-cyclical policy amidst a low demand is a common practice of central banks provided such a policy poses no risks for the price and financial stability. Comparison with the situation that was in 2011 and 2014 is unacceptable here. These days the economy is facing a new external shock caused by the pandemic. This has affected demand on the domestic market and internationally. At the same time there are no reasons to expect crises now. Even the powerful shocks we experienced in March-April 2020 have not led to the destabilization of the financial market,” he added.