The Board of the National Bank of Ukraine (NBU) on December 17 decided to retain the refinancing rate at 22% per annum, the NBU said in a press release.

According to the report, the NBU believes that the current monetary conditions should be retained to hinder inflation expectations.

"The NBU Board understands the existing risks of strengthening the pressure on prices. The key source of the pressure is retaining of low demand on Ukrainian exported goods. The cycle for increasing the refinancing rate by the Federal Reserve of the United States first since 2006 and devaluation of the currencies of countries that are trade partners of Ukraine also bring risks. Another risk of inflation growth is the possible increase of the excise duty on alcohol and tobacco," the central bank said.

The NBU could resume mitigation of the monetary policy if the no-inflation trend is retained, inflation expectations are improved and the risks weaken.

The Board also decided to stop sending ending cash stocks in banks' cash desks in the national currency to cover obligatory reserves from January 10, 2016.

The present requirement permits banks to send 75% of ending cash stocks in banks' cash desks in the national currency to cover obligatory reserves.