Ukraine's monetary base in January 2013 fell by 1.4%, while its monetary stock was up by 0.8%, according to a posting on the official Web site of National Bank of Ukraine (NBU).

"In January traditionally for the first month of the year off-bank cash narrowed by 2.6%, to UAH 198 billion, which is jointly with the rise in the government's funds in the national currency on NBU's accounts by 8.5 times, to UAH 4.1 billion, has led to a fall in the volume of monetary base by 1.4%, to UAH 251.7 billion. Monetary stock over the period grew by 0.8%, to UAH 779.2 billion," reads the report of the central bank.

Deputy Director General of the monetary and credit policy department at NBU, Oleksandr Arseniuk, said that a low-inflation environment continues reigning in Ukraine.

"Low inflation is one of the key guarantees for protecting the private economic interests of each citizen of our state," reads the report, citing Arseniuk.

The NBU said that total deposits at banks in January rose by 1.9.8%, to UAH 578.9 billion: funds on deposit by individuals were up by 2.4%, to UAH 374.5 billion and those of companies – by 1.2%, to UAH 204.4 billion.

"For the third month in a row the growth in deposits of the public has accelerated: they grew by 2.4% in January. The pace of growth in deposits of the public in the national currently were two times more compared to deposits in foreign currency," he said.

According to the report, the expansion of the deposit base promoted expansion of the correspondent accounts of banks, which grew by 13% last month, to UAH 27.9 billion.

Arseniuk said that the average volume of the correspondent accounts of banks in January 2013 grew to UAH 27 billion from UAH 23 billion in December.

The report also says that the mandatory reserves formed by banks as of early February 2013 came to UAH 19.4 billion, and UAH 6.44 billion was sent to separate accounts at the NBU.

The total loan volume in a month grew by 0.4%, to UAH 812.7 billion: loans issued to individuals rose by 0.45, to UAH 183.9 billion and that to companies – also by 0.4%, to UAH 628.8 billion.

"At first glance, the increase in the volumes of crediting in January was not large – 0.4%, but one should take into account the fact that traditionally January is the month of low business activity," Arseniuk said.

The NBU in January issued refinancing credits to banks worth UAH 3.7 billion. The average interest rate on the refinancing credits was 7.66% per annum.

The overall amount of mobilization operations conducted by the central bank in January 2013 was UAH 15.1 million (the average weighted rate was 1.89%).

"In January the cost of resources fell almost in all the monetary and credit market segments. Average rate on the interbank credit market in the national currency fell to 4.49% [from 8.10% in December 2012]," reads the report.

The NBU said that for the real economic sector average credit rate in hryvnias fell to 16.51% per annum from 17.55% in December 2012, and in foreign currency – to 9.01% from 9.30%. Average deposit rate was down to 11.81% in the national currency from 13.73% in December, while in foreign currency it grew to 6.30% from 4.83%.