Monetary Environment Review. Q3-2023

Ensuring macroeconomic stability comes into increasing conflict with the ongoing monetary policy. Monetary conditions remained stimulating for economic activity in Q3-2023. Loose monetary conditions were supported by low interest rates in the credit and deposit market, which remained below their neutral levels. Monetary stimulus became one of the drivers for GDP growth and widening of the positive output gap in Q3-2023. From the foreign exchange rate perspective, the impact on economic activity is assessed as weakly restraining in Q3-2023 due to the overvaluation of the Belarusian ruble.