The National Bank may start reducing the discount rate in the fourth quarter
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The updated macro forecast assumes the beginning of the discount rate reduction cycle in the fourth quarter of 2023. This was reported by the press service of the regulator.
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The NBU noted that even with such a scenario, monetary conditions will remain fairly tight over the forecast horizon, taking into account the further slowdown of inflation, the improvement of inflation expectations and, accordingly, the preservation of high real yield of hryvnia instruments.
“Keeping the discount rate at a high level will support the effects of previous NBU measures and will leave room for further growth in the attractiveness of savings in the hryvnia. At the same time, the improvement of the macroeconomic situation, including a more rapid decrease in inflation and the accumulation of a comfortable level of international reserves, creates prerequisites for revising the forecast of the discount rate,” the regulator said.
The NBU is ready to adjust the timing and pace of changes in the discount rate, taking into account further developments in the currency market, inflationary dynamics, stability of international support and the effectiveness of measures to ensure the attractiveness of hryvnia instruments.
Let’s remind
The Board of the National Bank decided to leave the discount rate at the level of 25% per annum.
Author: 
News editor Roman Myronchuk writes on the following topics: Economy, finance, banks, cryptocurrencies, investments, technologies
Source: Ministry of Finance
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