Ukrainian banks lower deposit rates

Eighteen Ukrainian banks lowered deposit rates over the last two weeks, from June 22 to July 6.

"[Interest rates on] hryvnia deposits for one to three months fell by 1.23 percentage points [pp], to a record low 6.8% per annum. Savings for a period of three to six months were the next to see a decrease in the rate (by 1.17 pp, to 8.45% per annum)," Liga.net reported on July 6, referring to a review of banks' deposit programs.

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The average rate on hryvnia deposits for the period from six months to a year slid by 1.1 pp, to 8.62% per annum. Deposits rates with a term exceeding one year dropped by 0.99 pp, to 8.56% per annum. Demand deposits rates fell by 0.58 pp, to 5.57% per annum, while the yield on deposits for the period up to one month declined by 0.56 pp, to 8.04% per annum.

"As for savings in U.S. dollars, the average rate also fell most [on deposits] for one to three months (by 0.29 pp, to 0.54% per annum). The rate on deposits from six months to a year dropped by 0.27 pp, to 1.31% per annum", the publication said.

Deposits for the period exceeding 12 months fell in price by 0.19 pp, to 1.78% per annum. Rates of those from three to six months dropped by 0.16 pp, to a yield of 0.94% per annum. Simultaneously, the average rate on demand deposits and those of less than a month declined (by 0.02 pp, to 0.54% and 0.58% per annum, respectively).

Rates on demand deposits in euros (0.24%) and deposits with a term of less than one month (0.34%) remained unchanged. Yields decreased for deposits from one to three months (by 0.23 pp, to 0.48% per annum).

Rates on deposits for a period of three months to six months fell by 0.11 pp, to 0.64% per annum. Rates on those from six months to a year declined by 0.2 pp, to a yield of 0.91% per annum. Savings for more than a year lost 0.09 pp in rates, now set at 1.08% per annum.