NBU reduces discount rate to 14%

The softening of monetary policy is due to the diminishing risks for instability of prices, explained the currency board head Valeria Gontareva. The decision came into effect on October 28. At this, NBU informed that foreign exchange reserves will amount to USD 17.5bn in 2016. The regulator expects the foreign currency reserves to stand at USD 23.1bn by the end of the next year. In 2018, the reserves are projected to grow to USD 27.8bn. The current account deficit will be at USD 2.5bn in 2016, USD 2.9bn in 2017, and USD 2.8bn in 2018. The growth will be due to increasing of imports related to investments, explained Valeria Gontareva. On the other hand, the country’s financial account will remain positive in 2017-2018 due to larger FDIs.