NBU predicts reduction in refinancing rate to 8% by late 2021 under baseline scenario
The National Bank of Ukraine (NBU) will reduce the refinancing rate to 8% in the fourth quarter of 2021 if inflation steadily declines to the target of 5%, the corresponding forecast has been announced by the central bank.
"The NBU's baseline scenario envisages the key policy rate to decrease further, to 8% over the coming years, provided that inflation steadily declines to the 5% target," NBU Governor Yakiv Smolii said.
"The largest decrease is expected over 2020, along with inflation returning to the target range and inflation expectations improving. If existing inflation risks, both internal and external, materialize, the key policy rate could decline to 8% more slowly. At the same time, higher demand for hryvnia government bonds from non-residents and the subsequent strengthening of the hryvnia will allow reducing the key policy rate at a faster pace than envisaged in the baseline scenario," the banker stressed.
Advertising
Advertising
MORE ABOUT
Ukraine, Israel on same side against partnership between Russia and Iran – Yermak
18:57, 19.04.2024
UK committs nearly GBP 150 mln to bolster Ukraine's energy sector
11:58, 19.04.2024
Ukraine focuses on dialog and cooperation, not on introducing restrictions on trade with Poland – Ministry of Agrarian Policy
17:16, 16.04.2024
SBU denies info about appeal against Maliuk's arrest in absentia in Russian court
20:59, 15.04.2024
Netherlands allocates EUR 4.4 bln for Ukraine for next three years
14:55, 15.04.2024
LATEST
Banking network, after growing in Q4 2023, narrows again in Q1 2024 – NBU
20:37, 19.04.2024
EIB developing energy-efficient housing restoration program for Ukraine with EUR 230 mln budget
16:45, 19.04.2024
Ukraine to receive EUR 560 mln from EIB for energy, housing rehabilitation projects
15:03, 19.04.2024
Ministry of Health in 2023 reduces number of drugs purchased through MAA mechanism - Sanofi
13:22, 19.04.2024
Ukrnafta will reduce electricity consumption at its filling stations