Who Does Stoke Inflation Expectations In Belarus?

Banks have prepared three "traps" for the population.

According to the study of the National Bank of Belarus, inflation expectations of the population have increased. 49.8% of Belarusians believe that prices have drastically increased. At that, 64.4% of respondents believe that the price increase will remain.

Head of the Strategy Analytical Centre, economist Leanid Zaika comments on the situation with price growth and inflation expectations in the interview to primus.by:

- To avoid such expectations, we need more than 3-4-5 years. People got accustomed to constant deteriration of living standards, drop in salaries, price growth. People have no a leap of faith both in the National Bank and the authorities no matter how Lukashenka tries to read a lecture to his ministers.

- Can the National Bank "manage confidence" by changes in the refinancing rate?

- It's quite new for them. They are not accustomed to work with small portions of "economic radiation". And now it's working up towards a so-called liquidation trap, interest rate trap, and deposit trap.

Just pay attention to the deposit interest rate in rubles (12.5%) and in dollars (1.5%). Guys, if you are professionals, then you should know that deposit interest rates in any currency must be either equal or nearly equal. But our banks set the deposit interest rate for rubles at 12%, and for dollars at 1.5%. Do you think that the Belarusian ruble is so expensive and weighty? For other 20 years the population will doubt the ruble as the reliable saving currency.

- How can the ruble become more reliable?

- It will take decades. The main thing is to impose the gold standard and competent ties with the population. It'll not be better, if such idiots say about sales of Belarusian cars for bitcoins or announce production of 40 thousand per year. Since the beginning of the year only 27 electric vehicles have been sold in Russia. Not more than 40 thousand were sol in the USA. Guys, you'd better first try to sell electric scooters or electric bikes. Or electric ploughs will be better.