Economy

NBU may refuse to respond to lockdown with discount rate - NBU Council member

The National Bank of Ukraine (NBU) may refuse to respond to the lockdown with a discount rate in the absence of fundamental changes in the macroeconomic forecast, said member of the NBU Council Viktor Koziuk.

"It is unlikely that the NBU will react to a lockdown with a rate without fundamental changes in the macroeconomic forecast, since the National Bank is still repelled by the idea that a lockdown is a shock that passes in time," he said in an interview with the Interfax-Ukraine agency.

Koziuk also believes that the government should not postpone the introduction of the lockdown until next year.

"I'm not sure that it [lockdown] will really be introduced. Apparently, some more flexible measures are needed and, apparently, these measures should have some kind of regional dimension. The question is, what will be the depth of stress," he added.

As reported, earlier representatives of the National Bank admitted the possibility of lowering the discount rate in order to support the economy in a lockdown, despite the forecast of an increase in the discount rate in 2021 already published by the NBU in response to accelerating inflation.

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