Bloomberg News

Ukraine’s Central Bank May Further Reduce Key Discount Rate

April 17, 2012

Ukraine’s central bank may cut the country’s key discount rate further after inflation slowed and the hryvnia remained stable.

“The current macroeconomic conditions allow maneuvering room for possible further stimulating measures,” the Kiev-based Natsionalnyi Bank Ukrainy said in a statement on its website today. Central bank Governor Serhiy Arbuzov said the bank will assess a possible rate cut after reports on economic growth and the March current account, the bank said.

The central bank cut the key discount rate to 7.5 percent from 7.75 percent in March, the first reduction since 2010 after the inflation rate fell to a nine-year low.

The central bank has bought about $500 million since March as situation on the currency market improved, the regulator said in today’s statement. The bank was not selling dollars to support the hryvnia in this period, according to the statement.

The currency inflow from non-residents in the first quarter exceeded payments to non-residents by 3.4 times, the central bank said.

To contact the reporter on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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