The national Bank left unchanged the interest rate
The discount rate of the national Bank will remain at 14% per annum. This decision was made by the Board of the regulator.
“This is due to the need to mitigate risks to achieving the objectives on inflation in 2017-2018. In January 2017, inflation accelerated to 12.6% yoy, in line with the National Bank forecast published in the Inflation report (January 2017). Slight acceleration of inflation occurred in connection with the increase in production costs, in particular for payment of wages, the growth of commodity prices on world markets, including oil and food, weakening of the hryvnia at the end of 2016 and the first half of January 2017. In February 2017, the inflation in annual terms continued expected to accelerate, mainly due to base effect,” – said in the message NBU.
Recall, the national Bank predicts by year-end 2017 inflation at 8% (plus/mins 2%), and in 2018 – 6% (plus/minus 2%).