Photo: Press service of the NBU, the NBU has lowered the interest rate by 5.5%
The discount rate is lowered by the regulator just two points to 8%. In March it was reduced by 1%.
The national Bank of Ukraine adopted a decision to reduce the discount rate from 10.0% to 8.0% per annum from 24 April 2020. On Thursday, April 23, reported on the website of the regulator.
“Lowering the discount rate to 8% decision of Board of National Bank of Ukraine from April 23, 2020 No. 289-rsh rate”, – stated in the message.
It is also specified that the national Bank continues monetary policy easing to compensate for the cooling of the global economy and support economic growth in Ukraine in the conditions of a pandemic of mers and quarantine restrictions.
In addition, the national Bank worsened the forecast of inflation in Ukraine. It is expected that growth of consumer prices by the end of 2020 will amount to 6.0 per cent. During the year the inflation rate will remain within the target range of 5% plus or minus 1 percentage point, but at the end of the year will accelerate to 6%.
Note that from the beginning of 2020, the national Bank for the third time lowered the discount rate. In March it was reduced by 1% to 10%. And at the end of January decreased from 2.5% – 13.5% to 11%. Since the beginning of this year the discount rate is lowered already at 5.5%.
Discount rate – the equivalent value of money in the economy. At this rate, the Bank provides funds to commercial banks who in turn lend to individuals and legal entities. Thus, the discount rate affects the cost of credit.
The rate increase shows the growth of inflation and falling economic growth in the country.
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