The Board of the National Bank of Ukraine has decided to cut the key policy rate to 11% per annum effective 31 January 2020. The NBU continues to ease its monetary policy with the aim of maintaining inflation at the target level of 5% and supporting steady economic growth.
Throughout most of 2020, inflation will be below the 5±1 pp target range, but it will return to the target range at the end of the year.
According to the NBU’s estimates, inflation continues to slow. It will be below the 5±1 pp target range starting in January and throughout most of the year. However, it will accelerate in Q4 to 4.8% at year-end 2020. Driven by the monetary policy easing, inflation in 2021–2022 will remain within the medium-term target of 5+/-1% pp. The further steady, low pace of inflation will also be due to the following factors:
●a prudent fiscal policy;
●relatively low energy prices on the global markets;
●higher productivity of the Ukrainian economy.