NBU has decided to reduce the discount rate

The regulator adds that the situation on the currency market have contributed to easing the pressure on prices.

The Board of the National Bank of Ukraine has decided to reduce the discount rate to 13% from 14 April 2017.

This was reported by the press service of the regulator.

“The recovery cycle of monetary easing is consistent with the need to achieve inflation target in the years 2017-2019, and will support economic growth”, – stated in the message.

According to the NBU, the actual acceleration of consumer inflation was expected and simultaneously below the path forecast of the National Bank, published in the Inflation report in January 2017. Then the national Bank had expected in March, inflation accelerated to 16.4% per annum.

“The fundamental factors of inflation remained controlled. Moderate fiscal and monetary policies and the improvement in inflation expectations restrained the acceleration of core inflation (6.3% in annual terms in March 2017)”, – stated in the message.

In addition, the regulator adds that the situation on the currency market have contributed to easing the pressure on prices. The global pricing environment for Ukrainian exporters with the beginning of the year has improved due to the increase in steel prices, iron ore and grains. Record harvests of grain and oilseed increased export potential. High export earnings has led to a strengthening of the hryvnia since mid-January.

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