Policy Progress: The National Bank of Ukraine Cut the Key Policy Rate to 15.5%

The American Chamber of Commerce in Ukraine welcomes the adoption of National Bank of Ukraine (NBU) Board Decision #797 - D dated October 24, 2019 aimed at declining the key policy rate to 15.5% per annum. The NBU will continue the cycle of monetary policy easing, provided inflation is steadily declining to the target of 5%.

The steady disinflation has been driven by a gradual easing of underlying pressures on prices, reflected in a rapid slowdown of core inflation. The tight monetary policy was one of the reasons behind the strengthening of the hryvnia and improvement in inflation expectations. Other factors behind the gradual disinflation will include: a stable fiscal policy, relatively low energy prices on the global markets, an increase in food supply driven by higher productivity in agriculture.

We welcome this positive step 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 goals and ensuring their effective implementation.