The National Bank of Ukraine (NBU) has raised the refinancing rate from 13.5% to 14.5% per annum from December 15, 2017.

According to a press release of the NBU, the board of the central bank made the decision on December 14.

According to the report, after the adoption in late October of the previous decision to raise the refinancing rate, the implementation of risks that could restrain the reduction of inflation next year became more likely. Among them, the NBU outlined the excess of expenditures envisaged in the approved national budget for 2018, a significant increase in social standards, a delay in obtaining the next tranche from the International Monetary Fund (IMF), a rise in prices for raw food products, labor migration due to the growth of the world economy.

"Accordingly, taking into account the need to level out the impact of these risks and ensure a downward trend of inflation to the target indicators, the NBU considers it necessary to raise the refinancing rate to 14.5% per annum," the report said.