REUTERS
The Financial Stability Council considers systemic risks for the country’s financial system to be controlled, while expectations remain positive, the press service of the National Bank reported following the latest meeting of the Council with the participation of the officials from the NBU, the Ministry of Finance, and other financial market regulators.
The Council noted that the economic growth in the country remained volatile and moderate as a result of the protracted negative effect of the blockade of uncontrolled territories in eastern Ukraine. This growth should accelerate in 2018, the Council believes.
At the same time, the Council noted increased risks of a more significant deviation of inflation from the central point of the target range at the end of the current year (8% +/- 2 pp) as a result of the rapid rise in prices for vegetables and fruit after adverse weather conditions and a reduction in the supply of meat and dairy products on the domestic market.
Read alsoPrice hike in Ukraine speeds up to almost 16 % in JulyAt the same time, the report says the fundamental pressure on inflation remains moderate due to low volatility in the foreign exchange market and stabilization of inflationary expectations.
UNIAN memo. The Financial Stability Council was established by Decree of the President of Ukraine #170/2015 of March 24, 2015, in order to detect timely and minimize the risks to stability of the national banking and financial system. The Council comprises the Governor of the National Bank, the Minister of Finance, heads of the National Commission on Securities and Stock Market Commission and National Commission for the State Regulation of Financial Services Markets, Managing Director of the Deposit Guarantee Fund.