Policy Progress: The National Bank of Ukraine Decreased the Key Policy Rate to 16.5%

The American Chamber of Commerce in Ukraine welcomes the adoption of National Bank of Ukraine (NBU) Board Decision #645-D dated September 5, 2019 aimed at decreasing the key policy rate to 16.5% per annum. The NBU will continue the cycle of monetary policy easing, provided inflation is steadily declining to the target of 5%. The pace of further decrease of the key policy rate to its neutral level of 8% will depend on both internal and external risks.

 

In case of accelerating structural reforms’ implementation, the NBU Board forecasts quicker decrease of the key policy rate. In turn, business will have an access to lower-cost loans and may expend its facilities. We welcome this positive step in the right direction, though there are still a number of steps to be taken on the way to monetary policy easing and full liberalization of currency market. The Chamber will take every single effort for achieving mentioned steps and ensuring their effective implementation.