Economy 2021-09-15T08:26:01+03:00
Ukrainian news
NBU Retains Discount Rate At 14%

NBU Retains Discount Rate At 14%

NBU, discount rate, National Bank of Ukraine

The National Bank of Ukraine has retained the discount rate at 14 per cent.

Ukrainian News Agency learned this from an NBU's statement.

The NBU explains this decision with the need to level down the inflation risks to achieve the inflation targets in 2017 and 2018.

Last year, consumer inflation decelerated to 12.4%, as predicted by the NBU.

Moderate volatility of the hryvnia's exchange rate throughout the year contributed to the decline in inflation.

But in late December 2016 and in early 2017 devaluation pressure on the hryvnia stepped up as a result of a number of situational factors.

First, the seasonal weakening of business activity and a shortfall in currency earnings from exports affected the FX market.

Second, currency supply was restricted because of high hryvnia liquidity with the exporters who received UAH 16 billion VAT in December.

Third, the demand for currency grew over the high budget expenses in December.

The next meeting of the NBU Board on monetary policy is taking place on March 2.

As Ukrainian News Agency earlier reported, the NBU on April 22, 2016 lowered the discount rate from 22% to 19%.

March 4, 2015, the central bank raised the discount rate from 19.5% to 30% and many times retained it at 30%.

August 28, 2015, the regulator decreased the discount rate to 27% and to 22% on September 25, 2015.

The National Bank reduced the discount rate from 22% to 19% on April 22, 2016 and on May 27, 2016 the NBU brought it down to 18% and to 16.5% on June 24, 2016.

July 29, 2016, the National Bank lowered the discount rate from 16.5% to 15.5% and to 15% on September 16, 2016.

October 28, 2016, the regulator cut the discount rate from 15% to 14%, and in December retained it at 14%.

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