Ukraine: Central Bank maintains interest rate at 15-year high
July 31, 2015
At its 30 July Monetary Policy meeting, the National Bank of Ukraine (NBU) decided to leave the discount rate unchanged at 30.00%. As a result, the discount rate remains at the highest level since 2000.
In its accompanying statement, the Central Bank commented that there has been a gradual easing in inflationary pressures and that core inflation has moderated in recent months. The Bank pointed out that this improvement in inflationary pressures is due largely to the recent exchange rate stability and a more balanced foreign exchange rate market. Against this backdrop, the Central Bank decided to keep the discount rate at the historically high level of 30.00% to keep the money market balanced. Looking forward, the Central Bank stated that it may loosen monetary policy in the future if inflation risks subside further.