NBU cuts key policy rate to 16.5%

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In May 2016, headline inflation dropped to 7.5% y-o-y, which was consistent with the NBU's projections, the report says.

The NBU will proceed with monetary policy easing to support the recovery of economic activity when it is not in conflict with achievement of inflation targets. Gradual and moderate easing of monetary conditions will be an economy incentive and, at the same time, it will secure inflation from domestic demand pressure. Lower interest rates will raise demand for loans.

Read alsoNBU lets banks accept electronic documents for export-import controlThe decision to cut the key policy rate to 16.5% is approved by NBU Board Decision No. 88-рш, dated June 23, 2016, On Key Policy Rate.