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Economy 2020-07-03T04:01:42+03:00
Ukrainian news
Risk Of COVID-19 Pandemic Having More Negative And Lasting Impact On Ukrainian Economy Remains – NBU

Risk Of COVID-19 Pandemic Having More Negative And Lasting Impact On Ukrainian Economy Remains – NBU

Ukraine, NBU, Coronavirus, COVID-19, coronavirus pandemic

The National Bank of Ukraine believes that the risk of the COVID-19 pandemic having a more negative and lasting impact on the Ukrainian economy remains.

This was stated in the summary of discussions on the discount rate at a meeting of the National Bank of Ukraine's Monetary Policy Committee, the Ukrainian News Agency reports.

During the meeting, members of the Monetary Policy Committee noted that the gradual relaxation of the quarantine has facilitated revival of economic activity.

At the same time, according to them, there is a significant risk that the negative impact of the COVID-19 pandemic will be deeper and longer lasting than predicted.

According to them, the surge in unemployment and the weak wage growth will slow the recovery of consumption.

Investment demand will also be suppressed, particularly due to the deterioration of financial indicators and lower expectations among enterprises.

The economy requires both fiscal and monetary incentives, the document states.

According to the National Bank of Ukraine, maintaining a low inflation rate will allow implementation of stimulating economic policy.

Members of the Monetary Policy Committee were unanimous regarding the need to lower the discount rate by 200 basis points to 6% in June.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine lowered its discount rate from 8% to 6% on June 12.

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