The NBU raises prime rate up to18%

UKRAINE - In Brief 06 Sep 2018 by Dmytro Boyarchuk
The NBU Board increased prime rate by 0.5ppt up to 18.0%. The decision was approved amid easing inflation tendency: by July CPI slowed down to 3.6% ytd compared to +8.2% ytd a year ago. Monetary authorities are concerned about mounting inflation risks. Press-release mentioned potential capital outflow from emerging markets as well as growing risks on resource markets. On the top of that the NBU Board is concerned about worsening inflation sentiments on the eve of elections. I can hardly add something to the comprehensive list of risks that the NBU outlined. After two months of premature hryvnia depreciation it was widely expected that the prime rate will go up. What’s more, the IMF deal still hangs in the air (though the mission has already arrived). The NBU mentioned possible further rate increase if inflation risks remain high. Next prime rate review will be on October 25. Hopefully by that time we will have clarity on the IMF deal.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.