Ukraine: Central Bank holds key policy rate unchanged
August 3, 2017
The National Bank of Ukraine (NBU) decided to hold the key policy rate at 12.50% at its 3 August monetary policy meeting. The decision follows a pause in the Bank’s loosening cycle in July.
The move was driven by a need to keep price pressures in check after a rise in inflation in recent months. The NBU noted in its accompanying statement, that risks to its July inflation projection have risen and a tight monetary policy is needed to help anchor expectations.
Looking forward, the Bank stressed that a continuation of its easing cycle would depend on the trajectory of inflation and that the Bank may need to maintain a pause in its easing cycle to bring inflation to target. The next policy meeting is scheduled for 14 September 2017.