Wednesday, May 18, National Bank of Belarus has raised the refinancing rate by 1% up to 14% per annum. The central bank management has stated that the decision was made "taking into account the significant growth in this year's consumer prices. " However, experts believe this is clearly not enough to fix the difficult economic situation in the country.
As Telegraf previously reported, financial analysts Sergei Chaly and Vadim Iosub and economist Leonid Zaiko believe that Belarus needs to dramatically raise the refinancing rate. In addition, the formation of the equilibrium exchange rate is required to conduct full-fledged trading on the foreign exchange market and introduce fiscal austerity. Otherwise «multiple» national currency collapse could break out in the country.
It’s the third time for 2011 when the National Bank has increased the refinancing rate. However, it’s been scheduled at 8-10% for 2011.
