EDB says higher wages, lending may accelerate inflation in 2023

June 5, BPN. Higher wages and lending expansion may push up prices in Belarus this year, the Eurasian Development Bank (EDB) said in its recent weekly macroeconomic report.

Real pay rose by 9.6 percent year on year in April and by 7.1 percent in March following a 3.4-percent decline in February.

The analysts linked the trend to a 14.5-percent increase in nominal wages and a fall in annual inflation to 4.7 percent in April.

The easing of monetary policies was followed by growth in the total amount of loans in Belarusian currency by 5.9 percent in April from March’s level, with corporate lending rising by 9.4 percent, the EDB said.

The refinance rate cut from 12 percent in January to 9.75 percent in May is conducive to lending expansion and business activity, but may also cause consumer prices to rise, the analysts warned.