Economy 2021-05-15T04:05:11+03:00
Ukrainian news
NBU Raises Discount Rate From 6.5% To 7.5%

NBU Raises Discount Rate From 6.5% To 7.5%

NBU, discount rate, inflation, Monetary Committee

The National Bank of Ukraine (NBU) raised the discount rate from 6.5% to 7.5%.

The NBU has said this in a statement following a meeting of the Monetary Committee, Ukrainian News Agency reports.

The NBU noted that in the first quarter of 2021, inflation expectedly went beyond the target range of 5% ± 1 p.p., but deviated from it more significantly than predicted by the forecast, under the influence of mainly temporary factors.

In March, the growth of consumer prices in annual terms accelerated to 8.5%, and core inflation - to 5.9%.

The dynamics of indicators exceeded the forecast of the National Bank.

"On the one hand, the rapid acceleration of inflation is mainly due to temporary factors - the rise in world food and energy prices. The revival of the global economy and the effects of worse harvests further pushed prices up. The low comparison base also had a significant impact," the regulator said.

On the other hand, fundamental inflationary pressure intensified due to further growth in consumer demand, in particular due to higher salaries.

Retail turnover has consistently exceeded pre-crisis levels.

In February, it was by 5.6% more than in the same month last year.

Due to the rise in prices for everyday goods, inflationary expectations remain elevated.

As Ukrainian News Agency earlier reported, on October 28, 2016, the NBU reduced the discount rate from 15% to 14%, and in December 2016 and January 2017 it kept it at the level of 14%, in April 2017 it reduced it to 13%, in May 2017 it reduced it to 12.5%, in October - increased to 13.5%, in December 2017 - to 14.5%, in January - to 16%, in March 2018 - to 17%, in July 2018 - to 17.5%, in September 2018 - to 18%, in April 2019 - reduced to 17.5%, in July 2019 - to 17%, in September 2019 - to 16.5%, in October 2019 - to 15.5%, in December 2019 - to 13.5%, in January 2020 - to 11%, in March - to 10%, in April - to 8%, in June - to 6%, in March 2021 - increased to 6.5%.

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