Ukraine’s Central Bank May Further Reduce Key Discount Rate
Ukraine’s central bank may cut the
country’s key discount rate further after inflation slowed and
the hryvnia remained stable.
“The current macroeconomic conditions allow maneuvering
room for possible further stimulating measures,” the Kyiv-based
Natsionalnyi Bank Ukrainy said in a statement on its website
today. Central bank Governor Serhiy Arbuzov said the bank will
assess a possible rate cut after reports on economic growth and
the March current account, the bank said.
The central bank cut the key discount rate to 7.5 percent
from 7.75 percent in March, the first reduction since 2010 after
the inflation rate fell to a nine-year low.
The central bank has bought about $500 million since March
as situation on the currency market improved, the regulator said
in today’s statement. The bank was not selling dollars to
support the hryvnia in this period, according to the statement.
The currency inflow from non-residents in the first quarter
exceeded payments to non-residents by 3.4 times, the central
bank said.
To contact the reporter on this story:
Kateryna Choursina in Kyiv at
kchoursina@bloomberg.net
To contact the editor responsible for this story:
Claudia Carpenter at
ccarpenter2@bloomberg.net
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