"This was the result of a revaluation of the equilibrium real exchange rate of hryvnia. Today, the structural characteristics of the Ukrainian economy are in line with a stronger equilibrium exchange rate than it was previously expected," stated in the inflation report, which was published on Friday.
According to new estimates, the National Bank has the potential to reduce the discount rate more significantly than previously expected - up to 7%.
"Such a level of interest rate will be equilibrium for the Ukrainian economy when inflation is at the level of the target and GDP and employment are at the potential level," the NBU stated.
However, the national currency debt decreased by 6,8 billion dollars (7.71%) to the level of 80,8 billion dollars.