Economy 2021-05-07T04:03:02+03:00
Ukrainian news
Low Vaccination Rate In Ukraine Creates Additional Risk Of Future Economic Losses – NBU

Low Vaccination Rate In Ukraine Creates Additional Risk Of Future Economic Losses – NBU

Ukraine, vaccine, Coronavirus, COVID-19, vaccination, vaccination rate, low vaccination rate, economic loss, global economic recovery

The low rate of vaccination in Ukraine creates an additional risk of future economic losses while increasing inflationary pressures during a global economic recovery.

The National Bank of Ukraine’s head Kyrylo Shevchenko announced this at a press conference, the Ukrainian News Agency reports.

According to Shevchenko, the other immediate risks are an escalation of the military conflict in the east of the country or on its borders; volatility in global capital markets; a sharp deterioration of the terms of trade.

“Considering the above-mentioned complex set of circumstances, we have raised the discount rate to 7.5%,” Shevchenko said.

He added that the National Bank of Ukraine’s forecast envisages keeping the discount rate at 7.5% until the end of the year.

Given the current inflationary dynamics, this should be sufficient to bring inflation to the 5% target in the first half of 2022.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine has raised the discount rate from 6.5% to 7.5% and lowered its inflation forecast for 2021 from 7% to 8% and its GDP growth forecast from 4.2% to 3.8%.


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