Ukraine's central bank to curb inflation to 5% by end of 2020

Deputy Governor of the National Bank of Ukraine (NBU) Dmytro Sologub says the central bank's tighter monetary policy will help to curb inflation to 5% by the end of 2020.

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"A tighter monetary policy will help to return inflation to the target range in the second half of 2019 and reduce it to 5% at the end of 2020," the NBU's press service quoted Sologub as saying.

According to him, the tighter monetary conditions will have a deterrent effect on the country's economic growth. However, such regulatory policy is a forced measure for a gradual reduction in inflation.

As UNIAN reported earlier, the National Bank in April decided to keep the key policy rate at 17% per annum after its increase four times in a row to 17% per annum in March 2018, 16% in January 2018, 14.5% in December 2017, and 13.5% in October 2017.

According to the NBU Monetary Policy Committee, which makes a decision on recommendations for the regulator's board, the key policy rate is unlikely to be lowered this year.

The NBU's highest rate was 30% per annum, which was in effect from March 4 to August 28, 2015.

Inflation in Ukraine in March 2018 slowed to 13.2% year-over-year (y-o-y) against 14% recorded in February 2018 y-o-y.