National Bank’s monetary policy may help curbing inflation in 2016
According to the National Statistics Committee, in April 2016, inflation stood at 0.7% and since early 2016 consumer prices rose by 6.4% with an annual forecast at 12%. The main influence on inflation had the increase in the housing and utility tariffs amid reduced household incomes and lower import prices on products. With the decline in money supply by the National Bank and the administrative burden on suppliers by the public authorities, inflation may further reduce to 0.5-0.6% per month. The decline in inflation may allow the National Bank to continue to lower interest rates in the economy, which will reduce the financial burden on businesses and will cut production costs.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.