The NBU also believe that the level of inflation to the end of 2017 may slow to 9.1%.
The national Bank of Ukraine (NBU) lowered its discount rate from 13% to 12.5% in annual terms. The decision adopted by the Board of the National Bank, the press service of the regulator.
The reduction in the NBU discount rate indicates a decline in inflation and accelerating economic growth in the country.
The NBU noted that the easing of monetary policy consistent with the need to achieve inflation target in 2017-2018 and at the same time aims to support economic growth.
“The speed and degree of possible further rate cuts will depend on the assessment of the medium-term risks to achieve the objectives of inflation in 2017 and, most importantly, in 2018,” – said the NBU.
The regulator also believe that the level of inflation to the end of 2017 may slow to 9.1%. According to the NBU, in April 2017 expected consumer inflation slowed to 12.2% in annual terms. This was primarily due to the exhaustion of the effect of the statistical base, in particular, significant growth in gas tariffs in April. At the same time, core inflation in April remained unchanged at 6.3%.
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