[ad_1]
Photo: Kirill Shevchenko (Vitaliy Nosach, RBC-Ukraine)
The Central Bank refused to further reduce the discount rate.
The National Bank of Ukraine (NBU) decided to keep the discount rate at 6.0% per annum as of September 4, 2020. Therefore, the rate remained at the lowest level in the history of Ukraine.
This was announced at a press conference by the head of the NBU Kirill Shevchenko, the RBC-Ukraine reporting correspondent.
As Shevchenko noted, “Maintaining a soft monetary policy will support economic recovery amid moderate inflation and high uncertainty about the future course of the pandemic in Ukraine and the world.”
“Taking into account the specified balance of risks and a constant recovery trend in consumer demand, the Board of the National Bank decided to keep the discount rate at 6%,” the NBU said in a statement.
As RBC-Ukraine reported, during a meeting of the Monetary Policy Committee (ILC) of the National Bank of Ukraine on July 22, 7 out of 10 ILC members supported keeping the discount rate at 6%. Three more spoke out in favor of reducing the rate to 5.5%.
After that, the National Bank of Ukraine (NBU) decided to keep the discount rate at 6.0% per annum as of July 24, 2020.
Note that the NBU refused to reduce the discount rate until the end of the year. The deputy director of the NBU, Dmitry Sologub, noted that the NBU rate (6.0%) is below the neutral level, that is, Ukraine is already in the phase of soft monetary policy.
