The National Bank of Ukraine (NBU) decided to remain the discount rate at the annualized 12.5% in order to curb the inflation rate achieving the inflation targets. CPI inflation reached 15.6% in June, above the NBU projections due to rising prices for food products. The NBU attributes the increase to the high world prices and increase in exports from Ukraine. At this, the fruits and vegetables lost part of their crops because of the weather. At this, the currency board believes that it will target the inflation within 5% rate in 2018-2020. To note, the NBU channeled UAH 30bn (USD 1.1bn) of its profits to the government from the start of the current year, as of August 7, 2017.
National Bank of Ukraine cuts key policy rate from 8% to 6%
NBU reduces discount rate to 14%
