“Seven of the eleven members of the Monetary Policy Committee (KMP) of the National Bank of Ukraine supported an increase in the discount rate to 14.5%.”, – WRITE: www.ukrinform.ua
It is noted that the three participants were more likely to increase the rate – up to 14%, and one member of the committee offered a more decisive increase – up to 15%.
Proponents of raising the rate to 14.5% emphasized the need for decisive action to contain inflation pressure and return inflation to a target of 5%. They noted that consumer inflation reached 12% a year and continued to grow in January.
The members of the CMP, who maintained a moderate increase to 14%, argued their position with slowdown in the economy and mainly the temporary nature of the current inflationary burst. In their view, most price pressure factors should run out in the summer.
At the same time, one member of the CMP insisted on raising the rate to 15%, considering insufficient steps to increase by 0.5 – 1 percentage point. He noted that the transition of inflation to a two -digit level attracts considerable attention and has a negative impact on the expectations of business and the population.
Read also: IN NBU toldhow split thoughts members monetary committee of accounting Bids in December Most of the CMP members also spoke as necessary to further strengthen the interest policy in the coming months to ensure the attractiveness of hryvnia assets and the maintenance of inflation expectations under control.
At the same time, the participants of the discussion assumed the possibility of returning to a careful reduction of the discount rate already in the current year, if there are signs of a steady weakening of price pressure.
As reported by Ukrinform, on January 23, 2025, the National Bank raised the discount rate by 1% to 14.5%.
Photo: NBU