The Central bank leaves prime rate unchanged at 17.0%

UKRAINE - In Brief 12 Apr 2018 by Dmytro Boyarchuk

Today the Board of the Central bank decided to leave prime rate unchanged at 17.0%. The decision was approved despite March inflation sped up to +1.1% m/m (+0.9% m/m in February) and despite no progress with the IMF. This decision might look a bit counter logical amid inflation speed up but in essence it was predictable. Firstly, CPI growth is driven by foods’ inflation. Everyone expects new crops to ease inflation pressure soon. Increasing prime rate, when potential inflation easing is so close, does not make much sense. Secondly, the NBU is concerned with inflow of ‘hot money’ from abroad...

Now read on...

Register to sample a report

Register