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NBU intends to continue to increase discount rate

NBU intends to continue to increase discount rate
15 of March 2021 г.
The National Bank of Ukraine (NBU) is planning to continue to raise its discount rate so that to ease inflationary pressures.

The press service of the NBU reported this following a meeting of members of the Monetary Policy Committee (MPC) dedicated to the key policy rate discussion.

“The MPC members agreed that the NBU would have to continue to increase its key policy rate in order to decrease underlying inflationary pressures and to balance expectations,” reads the report.

During the meeting, the MPC members paid particular attention to rising inflationary pressures amid the revival of the global and Ukrainian economies. In particular, inflation has accelerated significantly since the year-start.

“In January, as expected, inflation overshot the upper boundary of the target range of 5% ± 1 pp. In February, according to the NBU’s online monitoring data, consumer prices rose at a faster pace than envisaged in the baseline macroeconomic forecast (The January 2021 Inflation Report),” reads the report.

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