The national Bank of Ukraine sees the potential for further rate cuts. This was announced by Deputy head of the national Bank Dmitry Sologub at the meeting of the Verkhovna Rada Committee on financial policy and banking.
“For the future we see that there is potential for further rate cuts. But it should be consistent with the attainment of National Bank inflation target”, he said.
While Sologub was reminded that this year the regulator plans to reduce inflation to 8% plus or minus 2 percentage points in 2018, 6% plus or minus 2 percentage points
The Deputy head of the national Bank said that low and predictable inflation is the Foundation for economic growth.
We will remind, the Board of the NBU reduced the discount rate to 12.5% per annum from may 26, 2017.
We will remind, the past is the reduction of the NBU discount rate has held 13 April 2017, reducing the rate from 14% to 13%.
The national Bank uses the discount rate as a benchmark, how much it should cost money. In addition, the cost of refinancing of banks is also determined by the discount rate of the NBU at lower rates, banks will have to spend less money to service the refinance.