The National Bank leaves the discount rate at the level of 25%
The indicator may remain at this level until 2024
What happened? The National Bank of Ukraine (NBU) decided not to change the discount rate and left it at the level of 25%.
Source. The NBU.
Details. According to the regulator's forecasts, the discount rate may remain at this level until the second quarter of 2024.
“Taking into account the long period of significant price pressure and the prevalence of inflationary risks on the forecast horizon, as well as the need to ensure the attractiveness of hryvnia assets and maintain exchange rate stability, the board of the National Bank decided to keep the discount rate at the level of 25%,” the NBU's statement reads.
The National Bank points out that inflationary pressure will continue. Inflation is expected to exceed 30% by the end of 2022. After that the process is believed to slow down significantly, although it still will be much higher than the National Bank's target of 5%, primarily due to consequences of the war.
Rates on deposit certificates and overnight refinancing loans remain unchanged in order to ensure the further transfer of the outcomes of the June increase of the discount rate and rates for the NBU monetary operations to market rates.
At the same time, the bank warns that in case of the realization of risks, the NBU may increase the discount rate and the rates for its monetary operations over the current level in order to preserve the stability of the monetary and credit sphere and manageability of inflationary processes.
Previously. Today, on July 21, the NBU lowered the official hryvnia exchange rate by 25% to UAH 36.56 per dollar.
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