The American Chamber of Commerce in Ukraine welcomes the adoption of the National Bank of Ukraine (NBU) Board Decision on the key policy rate #397-D dated June 11, 2020 aimed at reducing the key policy rate to 6% per annum. Overall, the key policy rate has decreased by 7.5 pp since the start of the current year, hitting a historic low in independent Ukraine. Monetary easing and other anti-crisis measures taken by the NBU in recent months will support business activity in the country.
A decrease in the key policy rate below its neutral level indicates the end of the cycle of rapid monetary policy easing. Given the high level of uncertainty, the NBU’s future monetary policy will mainly depend on how great is the fall in consumer demand, which weakens inflationary pressures and, on the other hand, it will be driven by the speed of the recovery of business activity on the back of relaxed quarantine measures, which will accelerate price growth.
We welcome this positive step, though there are still a number of steps to be taken in order to support business and the economy as the country gradually lifts quarantine measures. The Chamber will take every single effort for achieving mentioned goals and ensuring their effective implementation.