14:58 01.03.2018

NBU increases refinancing rate to 17% from 16%

1 min read
NBU increases refinancing rate to 17% from 16%

The National Bank of Ukraine (NBU) has decided to touoghen the monetary policy and increased the refinancing rate to 17% from March 2 from 16%.

According to a posting on the website of the central bank, decision No. 133-rsh on the size of the refinancing rate was approved by the NBU Board on March 1, 2018.

"Inflation risks, which NBU mentioned in January, while approving the previous decision on the refinancing rate, are still relevant," the National Bank in a press release posted on its website.

The NBU said that the high vulnerability of the Ukrainian economy due to the delay in attracting another tranche under a program of cooperation with the International Monetary Fund (IMF), an increase in inflation expectations of economic agents and a significant growth in consumer demand are among these risks.

At the same time, the National Bank considers the January forecast to be relevant for reducing inflation to 8.9% in 2018 and its return to the target range in the middle of 2019.

The NBU said that the next decision on the refinancing rate, which will be approved in April 2018, will be made, taking into account new macroeconomic forecasts, including for inflation.

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