National Bank of Ukraine

Central Banks and U.S. Data Setting the Tone

September 14, 2023

The European Central Bank will announce its interest rate decision and revised macroeconomic forecasts within the hour. Expectations are narrowly divided between a rate hike to counter inflation and leaving policy unchanged in light of recessionary conditions and monetary restraint in the pipeline. Growth and inflation projections are apt to be respectively upward and downward. […] More

An Active Session from a Data Release, Central Bank Watching and Market Volatility Standpoint

June 15, 2023

The dollar touched an 8-month high against the yen overnight of 141.5 and currently shows a net 0.9% advance from Wednesday’s close. The dollar edged only 0.1% higher against sterling, the euro and Swiss franc, however. The price of Bitcoin tokens dived over $1000 (or 3.9%) so far today. Prices have diverged for West Texas […] More

Pick Your Poison: Excessive Inflation, Stagnant Growth or, Most Likely, A Mix of Both

December 8, 2022

The lagged effects of higher interest rates are biting into economic growth, but inflation remains way too high. This mix presents central bankers with a tougher decision, and financial market participants are getting whip-sawed. Compared to Wednesday closing levels the dollar is down 0.4% against the Canadian and Australian dollars, 0.2% versus the euro and […] More

Unusual Developments

October 20, 2022

British Prime Minister Truss just announced her resignation after an unusually brief six weeks in office. Having campaigned as the second coming of Margaret Thatcher, Truss lost the the confidence of her own party when a public roar of protest greeted her program of radical and unfunded tax cuts. Her departure is unlikely to quell […] More

Concern about European Economic Outlook Mounting

September 8, 2022

The record 75 basis point increase in European Central Bank interest rates failed to lift the euro, which continues to trade below dollar parity. Europe’s economy is more exposed than others to Russia’s invasion of Ukraine. Britain’s new prime minister, Liz Truss, has imposed an emergency freeze on gas and electricity rates. The weighted dollar […] More

Ukraine’s Monetary Policy Review Postponed

March 3, 2022

A scheduled monetary policy review by the National Bank of Ukraine was postponed. Ukraine’s discount rate had previously been lifted from 6.0% a year ago to 10% after a full percentage point hike at the previous review in January. In a released statement, Governor Shevchenko said that Ukraine’s banking system remains liquid and stable and […] More

Energy Prices Soaring as Both Russia and Ukraine Take a Beating

March 3, 2022

The price of West Texas Intermediate crude oil jumped another 3.5% overnight and has risen 52% since the end of 2021. The dollar jumped 11% overnight against the Russian ruble. Trading on the Russian stock exchange remains suspended. Russia’s banking system is gripped by an extreme liquidity shortage, and the country’s sovereign debt rating has […] More

National Bank of Ukraine

January 20, 2022

Officials at the National Bank of Ukraine, who had lifted their policy rate by three full percentage points to 9.0% last year, could not afford to pause rate tightening at this juncture. Instead at today’s first scheduled policy meeting of 2022, the rate was lifted by a fourth full percentage point to 10%, surpassing analyst […] More

Dollar Little Changed on Day that Saw Many Central Bank Meetings and Thick Menu of Released Data

January 20, 2022

The weighted dollar edged up by a marginal 0.1% overnight. It gained 0.1% against the euro and Swiss franc but is unchanged against the yen and sterling and down 0.1% versus the Canadian dollar. Stock market action in the Pacific Rim was widely varied, with Japan Nikkei and Hong Kong’s Hang Seng indices closing 1.1% […] More

Rate Hike at National Bank of Ukraine

December 10, 2021

officials at the National Bank of Ukraine chimed in with their fifth rate hike of 2021, a 50-basis point increase to 9.0% that follows 250 basis points of tightening from the four earlier moves. In a released statement, the Executive Board acknowledges a bigger global wave of inflationary pressures and a slower-than-assumed decline of inflation […] More