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Economy 2019-10-15T04:44:34+03:00
Ukrainian news
NBU Worsens Inflation Forecast For 2018 From 8.9% To 10.1%

NBU Worsens Inflation Forecast For 2018 From 8.9% To 10.1%

NBU, forecast, imflation

The National Bank of Ukraine (NBU) worsened the inflation forecast for 2018 from 8.9% to 10.1%.

The NBU announced this in a statement, Ukrainian News Agency reports.

"The National Bank raised the inflation forecast for 2018 from 8.9% to 10.1%. Expansion of consumer demand, high salaries growth, the recent rapid increase in oil prices will be reflected in consumer inflation also in next year. As a result, inflation will be stay higher from the target range longer than previously expected," the statement reads.

It is noted that at the end of 2019, inflation will decrease to 6.3% (previously, 5.8% was forecasted).

It will get to the limit of the target range in the first quarter of 2020 and will reach the medium-term target of 5.0% at late 2020 (forecast retained).

It is reported that the main factor in this slowdown of inflation will be tight monetary conditions.

These conditions will ensure a balance between the need to reduce inflation and bring it to the goal and the need to support economic growth.

At the same time, the rigidity of monetary conditions will increase due to other factors.

It is expected that banks will continue to increase interest rates on deposits of population in hryvnia by reducing the surplus of bank liquidity

As Ukrainian News Agency earlier reported, the National Bank states that business inflation expectations have improved and amounted to 8.9%.

At the same time, the NBU notes the retaining of high inflationary pressure against the background of consumer demand.

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