Belarus’s central bank expects inflation to slow and the ruble to stabilize as a result of tighter monetary policy, Chairman Nadezhda Ermakova said.
As well as raising rates, the central bank has bought and sold foreign currency to keep the ruble steady since it unified the country’s exchange rates on Oct. 20, the state-run Belta news agency reported Ermakova as saying today.
“There will be no more sharp fluctuations in exchange rates,” Ermakova said during a meeting with President Aleksandr Lukashenko in the capital, Minsk, Belta said.
The ruble lost two-thirds of its value this year as a result of a balance-of-payments crisis sparked by state spending. The central bank raised its refinancing rate to 40 percent from 35 percent last week in the 11th increase this year. Consumer prices rose 92.3 percent in October from a year earlier compared with 79.6 percent in September.