The National Bank of
Ukraine (NBU) doesn't plan to raise the refinancing rate, according to NBU
First Deputy Governor Oleksandr Pysaruk.
"Frankly, [it] won't," he said in an answer
to a question from Interfax-Ukraine whether the refinancing rate will be raised.
Director of the NBU Council Monetary Policy and
Economic Analysis Department Serhiy Nikolaichuk wrote on the NBU's official
Facebook page that a further drastic increase in the key interest rate is
inexpedient.
"… In our opinion, a further drastic increase in
the key interest rate is inexpedient, as inflationary pressure is expected to
be gradually going down in the next few months amid the tough budget policy and
stability on the forex market. Given the deep recession the country is facing
now, a negative impact of high interest rates on economic activity should be
also taken into account," he wrote.
The current levels of the consumer price index growth
shouldn't be the grounds for an automatic adjustment of the NBU's key interest
rate, as a decision to change this tool should rest mainly on inflation
forecasts.
"According to our estimates, the NBU's
refinancing rate will remain positive against inflation in 12-18 months, and
inflationary indicators will not include the recent increase in administratively
regulated tariffs," he said.
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