Monetary Environment Review. August 2024

Monetary conditions remained moderately loose in Q2-2024, and the National Bank was late in responding to inflation risks. Real interest rates on loans and deposits remained almost unchanged compared to Q1-2024. Interest rates fell slightly short of neutral levels, which helped meet the economy’s high demand for credit, and this supported excess demand in the economy. The Belarusian ruble remained moderately undervalued, which corresponded to small pro-inflationary effects.