National Bank of Ukraine

May 24, 2018

Ukraine’s policy interest rate was lifted four times within a half year: 100 basis points last October, December and March and by 15o bps in January. In a statement after keep the rate steady at 17.0%, the central bank board underlines that its belief that policy is now sufficiently tight to achieve the medium-term target (the middle of a 4-6% range) depends critically on the assumption of significant structural reforms being enacted. If that fails to happen more tightening may become necessary. Inflation at 13.1% and 9.4% core remain will above the target but is expected to ease by the end of this year and settle in target around the middle of next year.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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