Banking & Financial Services

Policy Progress: The National Bank of Ukraine Cut the Key Policy Rate to 13.5%

Policy Progress: The National Bank of Ukraine Cut the Key Policy Rate to 13.5%

The American Chamber of Commerce in Ukraine welcomes the adoption of National Bank of Ukraine (NBU) Board Decision #925-D dated December 12, 2019 aimed at declining the key policy rate to 13.5% per annum. The NBU will continue the cycle of monetary policy easing, provided inflation is steadily declining to the target of 5%.

Macroeconomic conditions that are more conducive lower inflation, continued cooperation with the IMF, and the practically unchanged balance of risks have enabled the NBU to ease monetary policy more quickly. The NBU Board believes that more active cuts in the key policy rate will not prevent it from maintaining inflation close to its 5% target, while at the same time promoting economic growth.

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.