The National Bank of Ukraine (NBU) announced that it has suspended making any rate decisions until “economic situation normalises,” the central bank said on March 3.
The NBU has left the prime rate at 10% for the meantime.
"Due to the forced introduction of administrative restrictions, market monetary instruments, in particular the discount rate, do not play a significant role in the functioning of the monetary and foreign exchange markets," the central bank explained.
The National Bank noted that with the normalisation of the economic situation, it would resume regular meetings of the board on monetary issues with decisions on the discount rate and the publication of an inflation report with a macroeconomic forecast.
Ukraine’s regulator was the first central bank to start hiking rates last year to battle rising prices caused by the coronacrisis: March (50bp), April (100bp), flat in June, July (100bp), September (50bp), December (50bp) and January (100bp).
Annual inflation in Ukraine was 10.0% year on year in January, unchanged from the previous month, State Statistics Service reported on February 9. Ukraine’s consumer prices jumped 1.3% month on month in January after growing 0.6% m/m in December, due to increases in prices for food, transportation and utility services.
Food prices jumped 2.5% m/m in January (after increasing 1.2% m/m in December). Prices grew the most for vegetables (20.5% m/m), eggs (3.9% m/m) and fruits (2.5%). At the same time, prices for sugar declined 0.8% m/m and prices of sunflower oil slid 0.5% m/m. Prices for alcohol and tobacco added 0.2% m/m in January (the same as in December).