Ukraine's central bank cuts key policy rate to 13%

By bne IntelliNews April 13, 2017

The National Bank of Ukraine (NBU) will cut its key policy rate by 1 percentage point (pp) to 13% per annum, the regulator said in a statement published on April 13.

According to the central bank, the resumed cycle of monetary policy easing comes under the pursuit of inflation targets set by the NBU for 2017-2019 and will help propel Ukraine’s economic growth. In early March, the regulator left its key policy rate unchanged at 14% per annum in order to mitigate risks for inflation targets in 2017-2018.

Last month, headline inflation in Ukraine was recorded at 15.1% year-on-year. “Price growth has accelerated primarily due to base effects and higher production costs,” the NBU said. “Actual acceleration of headline inflation was as expected, although at a lower trajectory than projected [by the NBU in January at 16.4%].”

The central bank added that the situation on the country’s FX market has helped weaken pressure on prices. “The external price environment for Ukrainian exporters has become more favourable since early 2017 due to recovery in prices for steel, iron ore, and grains, with an export potential being further bolstered by record high grain and oil crop yields,” the NBU said.

Appreciation of the hryvnia since mid-January was underpinned by solid export revenues, the central bank added.

The NBU forecasts 8% ± 2 pp for 2017, 6% ± 2 pp in 2018 and 5% ± 1 pp in 2019. The inflation forecast for 2017 remains at 9.1%, and 6% for 2018. Headline inflation is projected to decrease to 5% in 2019.

Related Articles

Croatian central bank approves sale of Splitska Banka to Hungarian OTP’s Croatia unit

The Croatian central bank (HNB) council has approved the sale of a 100% stake in Croatia's Splitska Banka to Hungarian lender OTP Banka’s Zadar-based Croatian unit OTP banka d.d., ... more

Islamic Development Bank in talks to buy Istanbul stock exchange stake

Saudi Arabia-based Islamic Development Bank (IDB) is in talks to buy a stake in Turkey’s stock exchange, Borsa Istanbul, Himmet Karadag, chairman of BIST, told Reuters on April 19. With a ... more

Azerbaijan's biggest lender posts unexpected profit in Q1

The International Bank of Azerbaijan (IBA), the largest lender in the country, reported a 24% y/y increase in operating income to AZN218mn (€123.4) in the first quarter of 2017. The bank also ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss