UNIAN
The Monetary Policy Committee of the National Bank of Ukraine considers it appropriate to maintain its key rate at 30%, given the recessive economic tendencies in the country, according to a report the central bank released on its Web site following a committee meeting on May 27-28.
The committee noted the consolidation of positive trends in the monetary market and the gradual restoration of public confidence in the banking system.
At the same time, the committee pointed to a significant acceleration of consumer price inflation and the continuation of a recessive tendency in Ukraine’s economy, accompanied by a decline in the manufacturing index of the country’s basic industries.
"According to general opinion of the committee’s members, normalization of the functioning of the monetary market, in particular, its foreign exchange segment, should be the main contribution of monetary policy to economic recovery under the current macroeconomic situation,” the committee’s statement reads.
“Such a macro-financial stabilization will help restore effective monetary transmission, and provide an opportunity to support credit growth processes in the banking system when easing monetary policy in the future."
The committee members said that when implementing monetary policy, the NBU should apply its existing tools, with consideration to the forecast for inflation and the inflationary expectations of the public and businesses.