National Bank of Ukraine

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

Fresh Dose of Moderate Risk Aversion Attributed to Covid Concerns

December 9, 2021

Ten-year sovereign debt yields retreated overnight by four basis points in the Netherlands, Germany, France and Spain, three basis points in the United States and two basis points in Great Britain. Safe haven demand lifted the U.S. dollar by 0.6% against the Swiss franc and Mexican peso, 0.5% versus the euro and Chinese yuan, 0.4% […] More

This Year’s Fourth Central Bank Rate Hike in Ukraine

September 9, 2021

The National Bank of Ukraine‘s policy interest rate was raised for the fourth time this year. Today’s increase of 50 basis points matches the hikes done in July and March, while one in April was by a full percentage point. Altogether, the rate has been raised from 6.0% at the start of the year to […] More