The Management Board of the National Bank of Ukraine approved the decision to increase the interest rate.
The National Bank decided to increase the interest rate up to 17.5% per annum for setting the inflation rate into target range in 2019.
The National Bank of Ukraine (NBU) decided to increase the interest rate by 0.5 percentage points (p.p.) – up to 17.5% for setting the inflation rate into target range in 2019. NBU Board approved the respective decision at Thursday session, June 12, the regulator’s press office reports, Correspondent.net reports.
NBU considers that the inflation reduction to target may be jeopardized due to some factors – further surge in domestic demand, active labor migration, strengthening risks in respect to obtaining IMF tranche and other related financing, high inflationary expectations, low interest of investors in assets of developing countries.
“The tougher monetary policy will smooth out their influence and contribute to inflation decrease up to 5.8% as of the end of the next year and up to 5% in 2020”, NBU Governor Yakov Smolii noted.
