Such a move would support credit development and economic recovery without additional risks to price and financial stability, the regulator said.
The National Bank of Ukraine (NBU) reduced the discount rate by 1% – to 13.5% per annum. This was reported on the regulator’s website on Thursday, April 25.
“Taking into account the balance of risks, as well as favorable macro-financial trends, including better inflation dynamics, the NBU board decided to reduce the discount rate by 1 percentage point – to 13.5%,” said statement.
It is expected that such a move will support credit development and economic recovery without additional risks to price and financial stability.
Along with the reduction in the discount rate, the overnight certificate of deposit and three-month certificate of deposit rates are also reduced by 1 percentage point – to 13.5% and 16.5%, respectively. In addition, the NBU significantly reduces rates on refinancing loans – by 2 percentage points, up to 17.5%.
The NBU also sees a certain margin for further easing of interest rate policy while maintaining favorable macro-financial trends.
“The base scenario of the NBU forecast provides for a reduction in the discount rate to 13% this year and the planned measures for monetary liberalization should not create additional threats to macro-financial stability and the stability of . the foreign exchange market,” said the National Bank.
As you know, in June 2022, the NBU raised the discount rate from 10 to 25%. This level remained until July 2023, when the regulator reduced the rate to 22%. In September, the NBU reduced the rate to 20%, in October – to 16%, and in December – to 15%. In January, the discount rate did not change, and in March it was reduced to 14.5%.
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Source: korrespondent
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