NBB forecasts 6% inflation in 2020 – Kallaur

<p> MINSK, Nov 11 - PrimePress. The National Bank of Belarus (NBB) forecasts 6% inflation in 2020, NBB head Pavel Kallaur told reporters on November 11, 2020. </p> <p>   </p> <p> According to the National Statistics Committee of Belarus (Belstat), inflation was at 0.6% in Oct 2020; 5.4% in Jan-Oct 2020. Prices rose in Oct 2020 by 6.2% year on year; 5.3% y/y in Jan-Oct 2020. </p> <p>   </p> <p> According to Kallaur the factors that cause the accelerated inflation are temporary, and their influence will weaken. This year, consumer prices are expected to increase by about 6%. Inflation will gradually slow down, nearing the target of 5% by the end of 2021 thanks to the prevalence of disinflationary factors. </p> <p>   </p> <p> Kallaur expects a long period of global economic growth, while the epidemic will slow down the recovery. Low demand will constrain inflation in foreign countries. The European Central Bank, the U.S. Federal Reserve and the Bank of Russia are likely to pursue mild monetary policy. </p> <p>   </p> <p> Kallaur said that the state will continue supporting enterprises and households in overcoming pandemic impacts and resuming economic growth. As business activity recovers, the need for significant fiscal incentives from the state will decrease, and, as a result the budget deficit will gradually decrease as well. </p> <p>   </p> <p> As previously reported, inflation in Belarus was at 4.7% in 2019, the official forecast being 5%. The official inflation forecast for 2020 is also at or below 5%. The National Bank of Belarus did not rule out, though, that inflation might grow to 6%. Prime Minister of Belarus Roman Golovchenko said in November that inflation can go up to 10% by the end of 2020. End </p>

2020-11-12

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