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3 Mar 2015
Ukraine hikes discount rate to 30% from 19.5%; highest since 2000
FXStreet (San Francisco) - The National Bank of Ukraine announced its decision to hike it benchmark interest rate from 19.5% to 30% according to a press release published today. The decision will be effective on Wednesday.
As major reasons, the bank says:
"In particular, it was noted a significant acceleration of consumer inflation - in January 2015 to 28.5% yoy. The main factor accelerating inflation became a correspondent and huvannya prices due to the devaluation of the hryvnia."
"Total foreign exchange market in Ukraine is stress, which is primarily due to negative expectations on the background of continuing hostilities in the east. From the beginning, the depreciation of the hryvnia exchange rate against the US dollar was about 80%."
As major reasons, the bank says:
"In particular, it was noted a significant acceleration of consumer inflation - in January 2015 to 28.5% yoy. The main factor accelerating inflation became a correspondent and huvannya prices due to the devaluation of the hryvnia."
"Total foreign exchange market in Ukraine is stress, which is primarily due to negative expectations on the background of continuing hostilities in the east. From the beginning, the depreciation of the hryvnia exchange rate against the US dollar was about 80%."