Economy 2021-06-15T05:11:48+03:00
Ukrainian news
NBU Lowers Discount Rate From 15.5% To 13.5%

NBU Lowers Discount Rate From 15.5% To 13.5%

NBU, discount rate, inflation

The National Bank has lowered the discount rate from 15.5% to 13.5%.

This is stated in the NBU report on the results of the meeting of the monetary committee, Ukrainian News Agency reports.

In November 2019, consumer inflation rapidly decelerated - to 5.1% on an annualized basis, which was below the expectations of the National Bank.

Thus, inflation in November reached the medium-term goal of 5%, which the National Bank declared in 2015.

The basis of this steady trend is the gradual weakening of fundamental pressure on prices, a sign of which is a slowdown in core inflation, as well as a decrease in prices for energy products.

Inflation slowed significantly due to both the strengthening of the hryvnia exchange rate and the improvement in inflation expectations.

These factors leveled pressure on prices from the side of steady consumer demand and a weak harvest of individual vegetables.

According to the October forecast, the National Bank expects the discount rate to descend to 8%.

An updated forecast will be released within the next review of the macroeconomic forecast in January.

It will take into account, in particular, the impact on future inflation from consumer demand and the situation in the foreign exchange market.

In addition, the National Bank will continue to take into account the progress of key domestic reforms.

These are both the reforms provided by the memorandum of cooperation between the government and the National Bank, and judicial reform as a necessary prerequisite for ensuring the rule of law in Ukraine.

As Ukrainian News Agency earlier reported, since March 4, 2015, the NBU has raised the discount rate from 19.5% to 30%.

Later, the central bank retained the discount rate at the level of 30% several times.

On August 28, 2015, the central bank lowered the discount rate to 27%, and on September 25, 2015 - to 22%.

Since April 22, 2016, the National Bank lowered the discount rate from 22% to 19%, on May 27, 2016 - from 19% to 18%, on June 24 - from 18% to 16.5%.

On July 29, 2016, the National Bank lowered its discount rate from 16.5% to 15.5%, from September 16, 2016 - from 15.5% to 15%.

On October 28, 2016, NBU lowered discount rate from 15% to 14%, and in December 2016 and January 2017 - retained at 14%, in April 2017 - lowered to 13%, in May 2017 - lowered to 12.5% in October - raised to 13.5%, in December 2017 - raised to 14.5%, in January - raised to 16%, in March 2018 - raised to 17%, in July 2018 - raised to 17.5%, in September - raised to 18%, in April 2019 - lowered to 17.5%, in July 2019 - lowered to 17.0%, in September 2019 - lowered to 16.5%, and in October 2019 – lowered to 15.5%.

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