The NBU cuts policy rate by 0.5 ppt down to 17.5%

UKRAINE - In Brief 25 Apr 2019 by Dmytro Boyarchuk

On April 25, the NBU Board approved policy rate cut by 0.5 ppt down to 17.5%. Relatively smooth election process, steady national currency and further inflation easing (+0.9% m/m or +8.6% y/y in March) are behind the decision. But peaceful elections without confrontation, probably, were the main trigger for the Board to move on with the cut. Next meeting of the NBU Board will be on June 6, 2019. By that time Volodymyr Zelenskiy will be inaugurated (by June 3rd the latest) and we expect to hear some words about potential early parliament dismissal (this option is widely discussed). In this context very likely the NBU will abstain from any further moves before they have better view on both Zelenskiy behavior and upcoming parliamentary elections.

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