NBU retains discount rate at 30%
The National Bank of Ukraine (NBU) has retained the discount rate at 30% per annum which is aiming at strengthening positive moves on the monetary and credit market and supporting the trend of declining inflation, the central bank said on its website after a meeting of the NBU Board to discuss monetary policy, which was held on July 30, 2015.
"Positive moves we see now show that the NBU's stabilizing actions are effective. At present, the monetary and credit market has been balanced, and if the balance is retained, we expect that consumer inflation would slow more. Thus, with the conditions of stable reduction of inflation risks we would switch to relaxing the monetary and credit policy in the near term," the press service said, citing NBU Governor Valeriya Gontareva.
The central bank said that gradual decrease of inflation pressure is in particular thanks to the increase of the balance of the currency market.
The NBU said that demand for foreign currency was lower than supply in July and in the two previous months in the interbank and cash segments. The fluctuations of the market hryvnia exchange rate to the U.S. dollar were rather narrow.
The NBU increased discount and refinancing rates to 30% per annum from March 4, 2015, from February 6 it was 19.5%, and from November 13, 2014 – 14%.