The best time to start the discount rate lowering cycle is the fourth quarter of the current year.
Most of the members of the Monetary Policy Committee believe that the National Bank of Ukraine can reduce the discount rate to 21% by the end of 2023. This was reported by the press service of the NBU following the discussion of the committee members on Monday, May 8.
It is noted that the fourth quarter is the best time to start the rate cut cycle.
Taking into account the expected international aid, which will close the current account deficit, in 2024 the NBU may continue to reduce the discount rate, but it will be slow. According to the majority of ILC members, at the end of next year, the discount rate will be 18%, added the NBU.
As you know, in June 2022, the National Bank raised the discount rate from 10 to 25%. Since then, this indicator has not changed, and on April 27 this year, the regulator again kept the discount rate at 25%, and also improved the forecast for the main economic indicators.
Source: korrespondent
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