Groisman called Gontareva to accelerate the reduction in the discount rate
The national Bank should accelerate the decrease in the discount rate for loans, which will improve the economy of Ukraine.
This was stated by Prime Minister Vladimir Groisman.
“With regard to credit policy, the government’s position is the following: we believe that the national Bank should do more to reduce the cost of loans in the economy of our state”, – he said during the Hour of questions to the government.
According to Groisman, the Cabinet has repeatedly made that point and now there is a decrease in the discount rate, “but not as much as we would like”.
“Therefore, we will insist that this work was expedited and we received more resources in the economy of the state,” the Prime Minister said.
Note, the discount rate is the interest rate at which the NBU provides loans to commercial banks. At a low discount rate and rapid weakening of the hryvnia, the banks have a winning strategy: they can borrow money in the NBU, translate them into foreign currency and by the depreciation of the hryvnia to the income that covers the bet. But high discount rate makes such operations more risky.
The implications of changing the discount rate on the economy, the loans and the wallets of Ukrainians read more at TsNII this link.