Ukraine central bank rate cut bigger than expected

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Photo by Golitsynsky/Shutterstock.com

The National Bank of Ukraine (NBU) announced its third interest rate cut in a row on Thursday; the move was bigger than expected, with the central bank citing slowing inflation.

The National Bank of Ukraine building in Kiev (photo by Golitsynsky/Shutterstock.com)

The board decided to cut its key policy rate from 16.5% to 15.5%, the Kiev-based NBU said in a statement, as cited by U.S.-based financial newswire RTT News. Economists had expected a reduction to 16%.

The cycle of monetary policy easing is continuing as inflation is firmly declining towards the target of 5%, the bank said in an accompanying statement.

In September, inflation declined to 7.5% and the bank expects the figure to fall to 6.3% by the end of the year. Price growth is forecast to reach 5% at the end of 2020, RTT News noted.

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