The National Bank of Ukraine (NBU) from October 28 cuts refinancing rate from 15% to 14%.

The central bank said in a press release on Thursday that the decision on the size of the refinancing rate was approved by its board on October 27, 2016 (No. 372-r).

"The further relaxation of the monetary policy is linked to the reduction of risks for price stability and it meets the inflation targets for 2017-2018," the NBU said.

The forecast for consumer inflation in 2016-2018 was not changed.

"In Q4 2016 inflation would accelerate to the targeted level as the increase in utilities and housing tariffs will be reflected in statistics. There is high likelihood that inflation of 12% plus or minus 3 percentage points would be achieved if no unanticipated events occur," the bank said.

In 2017, inflation in annual terms will be uneven. In Q1 2017 it could exceed 12%. In Q4 2016 inflation will decrease.

"The key factor for inflation decline to the targeted indicators and restoration of the economy is reforms under the IMF-supported program," the NBU said.