[ad_1]
Photo: dollar exchange rate (Vitaliy Nosach, RBC-Ukraine)
Hryvnia’s interest rates on deposits fell to 8%, in foreign currency to 1%
In November 2020, the average interest rates of banks on new deposits in hryvnia for the population amounted to 8.2% per annum. This is 0.7 pp lower than in October (8.9%).
This is evidenced by the operational data of the National Bank of Ukraine.
According to the NBU, the rates of new deposits for the population in foreign currency in November decreased from 1.3% to 1.2%.
In November 2020, the rates on deposits in hryvnia for companies did not change: 3.8% per annum, on deposits in foreign currency increased from 1.1% to 1.4 per year.
The bank deposit portfolio in November grew by 0.5% to UAH 1,296 billion, incl. the population grew 1.0% to 656 billion UAH, businesses grew 0.1% to 617 billion UAH.
Let us remind you that the NBU predicts a decline in deposit rates at banks. In the context of declining devaluation expectations and low inflation, banks still have room to cut interest rates in hryvnia on time deposits. This is indicated in particular by a significant “gap” between banks’ interest rates and the NBU discount rate, which today has dropped to a record 6%.
Note that, according to the NBU, the interest rates of new bank loans for the population in November 2020 in national currency were 34.7% per year. Compared to October, rates decreased 0.5 percentage points.
