The Central Bank for the second time since the start of the war with Russia maintains the discount rate at 10%.
The National Bank has again decided to keep the discount rate at 10% amid the war in Russia, according to the regulator’s website on Thursday, April 14th.
“It was decided to postpone consideration of the issue of changing the discount rate. Under current conditions, the impact of the discount rate on the functioning of the currency and foreign exchange markets is limited. Consequently, it will continue to be remain unchanged – at the level of 10% – until the effectiveness of money delivery channels is restored, ” – said in the message.
Recall, on January 20, the Board of the National Bank decided to raise the discount rate from 9% to 10% per annum and announced a large possibility of its further increase.
And on March 3, after the start of the war with Russia, the NBU left the discount rate unchanged.
The discount rate is equal to the value of money in the economy. At this rate, the NBU provides funds to commercial banks, which, in turn, lend to individuals and legal entities. Thus, the discount rate affects the value of credit resources.
The increase in the discount rate indicates an increase in inflation and a collapse of economic growth in the country.
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Source: korrespondent
