Ukraine's central bank keeps key interest rate at 22%

By bne IntelliNews March 3, 2016

The National Bank of Ukraine (NBU) will leave the refinancing rate unchanged at 22%, aiming to stave off any adverse impacts that domestic political instability and global economic turbulence could have on the Ukrainian economy, the regulator said on March 3.

"The decision to keep interest rates unchanged is consistent with the NBU's objective of lowering headline inflation to 12% by the end of 2016 and 8% by the end of 2017," the central bank underlined in a statement. "In recent months, inflationary pressures have been dampened by the NBU's commitment to prudent monetary policy and subdued domestic demand."

According to official statistics, inflation in Ukraine reached 43.3 y/y in 2015, 24.9% y/y in 2014.

Sluggish economic growth, which will continue to weigh on consumer demand, is one of the key factors that will keep inflation firmly on a downward trend in 2016, the regulator believes. "Low global prices for energy and food are among other factors supporting the downward trend in inflation," the statement reads.

Related Articles

Latvia’s ABLV bank asks US authorities to stop sanctions procedure

Latvian lender ABLV has asked the US Financial Crimes Enforcement Network (FinCEN) not to go forward with sanctions against it for money laundering, the bank said on April 20. Latvia’s ... more

Moody’s places Slovenia’s largest bank NLB on review for downgrade

Moody’s Investor Service announced that it has placed on review for downgrade the ratings of Slovenia’s largest lender Nova ... more

Multilateral lender IIB to place its inaugural transaction in Czech koruna

Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in ... more