National Bank of Ukraine
October 27, 2016
Ukraine’s key interest rate was cut by another full percentage point to 14.0%, bringing the cumulative drop since May to 800 basis points. If economic developments continue to evolve as monetary officials expect, more reductions will follow, according to a released statement. Most importantly, total and core CPI inflation have been diminishing. Total inflation last month was 7.9%, a half percentage point less than in August, and core inflation fell to 6.3%. Officials retained total inflation targets centered on 12% this year, 8% in 2017 and 6% in 2018, and they believe these goals will be reached even as GDP growth more than doubles to 2.5% in 2017 and then accelerates further to 3.5% in 2018.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Ukraine
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