Since July 13, the NBU has set a discount rate at the level of 17.5% per annum to return inflation within the target range in 2019.
The increase in the discount rate was approved by the decision of the NBU Board of July 12, 2018 No. 443-rsh “At the rate of the discount rate.”
According to the regulator, the decline in inflation may be jeopardized by a number of factors – further revival of domestic demand, active labor migration, increased risks in obtaining the next tranche of the IMF and other related financing, high inflation expectations, a decrease in investors’ interest in the assets of developing countries.
In case of increasing risks for reducing inflation and macrofinance stability, the NBU can raise the discount rate to the level necessary to return inflation to the established goal.
The next meeting of the NBU Board on Monetary Policy will be held on September 6, 2018.
The discount rate of 17% per annum was established from May 25, 2018.
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