Ukraine’s National Bank to reduce its discount rate to 10% from March 13

Source : 112 Ukraine

The discount rate forecast has been lowered to 7% by the end of 2020
15:24, 12 March 2020

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From March 13, the National Bank of Ukraine will reduce the discount rate to 10%. This was reported by the regulator's press service.

"The Board of the National Bank has decided to reduce its interest rate to 10% per annum since March 13, 2020. The National Bank is continuing its projected monetary easing in order to bring inflation back to the target range of 5% +/- 1 percentage point and to support economic growth in Ukraine in the conditions of world economy’s cooling,” the message reads.

Related: National Bank sells $350 million on interbank market to prevent hryvnia hike

According to NBU, the discount rate forecast has been lowered to 7% by the end of 2020. The main assumption, which the regulator takes into account, is the continuation of cooperation with the IMF. Risks include the spread of coronavirus, which could potentially lead to a recession in the world economy and a significant drop in the economic activities in Ukraine.

As we reported earlier, according to Prime Minister Denys Shmygal, Ukraine has to fulfill two other IMF conditions in order to receive a new loan program.

He did not specify them, but said that significant progress had been made in cooperation between Ukraine and the IMF.

Related: We stand on threshold of financial and economic crisis, - Ukraine’s PM

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