OREANDA-NEWS. July 18, 2012. The National Bank of Belarus fears lest the government’s move to raise the first grade wage rate should accelerate inflation growth in the country. NBB chief Nadezhda Yermakova made a statement to this effect on Friday.

“We have apprehensions, which is natural: the more money there is in circulation untied with the supply of services and commodities (Belarusian-made, in the first place), the higher is the pressure on inflation growth, which results from the growing demand for foreign currency,” Yermakova said.

“Production companies, the government and the National Bank should do their best to take away that money,” Yermakova said.

“For that reason, interest rates on individual deposits must be high enough. From that point of view, a decline in the refinancing rate is out of tune with those plans,” Yermakova said.