Date: a week ago   Category: Financial

The NBU did not begin to reduce discount rate, despite inflation delay


The Central Bank allows strengthening of inflationary pressure because of monetization of subsidies, pension indexing and increases in other social expenses. The national bank in the fourth time in a row decided to leave without change discount rate at the level of 18% per annum. It is reported the website of the Central Bank on Thursday, March 14. Last time the Central Bank reduced discount rate - to 12.5% from 13% per annum - on May 26, 2017. At the same time, in the NBU see potential pro-inflationary risks in plans of the government to increase social expenses in the next months. "In the next months increase in social payments and monetization of subsidies for payment of housing and communal services is planned. Though the effect of these separate factors insignificant, in total their influence can be notable if affects inflationary expectations in the conditions of strengthening of uncertainty in a year of double elections", - it is said in the statement. Add to the NBU that the active strengthening of an exchange rate of hryvnia advancing the present forecast of the Central Bank, on the contrary promotes inflation delay. As it was reported, in February inflation slowed down twice - from 1% to 0.5%. Since the beginning of year of the price in Ukraine grew by 1.5%. In annual measurement (by February, 2018) inflation slowed down up to 8.8%. Discount rate – an equivalent of cost of money in economy. At this rate of the NBU provides means to commercial banks, and those, in turn, credit natural persons and legal persons. Thus, discount rate influences the cost of credit resources. Increase in discount rate speaks about growth of the rate of inflation and falling of rates of economic growth in the country. News from the Correspondent.netv of Telegram. Subscribe for our https://t.me/korrespondentnet channel

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