The regulator predicts the alleviation of the interest policy only after the final passage of the price penetration of the price and reducing the risks of incorporating inflation to a high level.
The National Bank of Ukraine a second time in a row maintains a discount rate at 15.5% each year. It was reported on the regulator website on Thursday, June 5.
“It will support the stability of the foreign exchange market and the control of inflationary expectations, which will contribute to the return of inflation to the sustainable decay. In the event of threats increased to sustainable inflation in the target, the rate of accounting will remain in the accounting report that has not changed longer than the April Macrodrogenosis,” said the report. “
It is indicated that mitigating the policy of interest will be possible only after the final passage of the climax of the price increase and reducing the risks of incorporating inflation to a high level.
At the same time, if there is a need to strengthen financial conditions, the NBU is ready to take further steps, added to the National Bank.
Also, along with maintaining the discount rate, all other bets on the main financial policy tool are also preserved.
Earlier, the NBU increased the discount rate three times in a row. The last increase of this was in March. Prior to this, the National Bank held it for six months to 13%, where it was reduced from 25% from July 2023 to seven stages.
The discount rate is equal to the cost of money to the economy. At this rate, the NBU provides funding to commercial banks, and they, the individual credits and legal creatures. Therefore, the discount rate affects the cost of credit resources. An increase in discount rates indicates an increase in inflation levels and decline in economic growth rate in the country.
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Source: korrespondent
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