Keeping 6% rate on Oct 21 supported by 9 out of 10 members of NBU committee, one was in favor of 5.75%

Maintaining the discount rate at 6% at the meeting on October 21 was supported by nine out of 10 members of the Monetary Policy Committee of the National Bank of Ukraine (NBU), despite a significant degree of uncertainty and a symmetric balance of inflation risks, the regulator's website said on Monday.

According to the report, another member of the committee spoke in favor of the need to reduce the discount rate by 0.25 percentage points (p.p.) – to 5.75% due to the fact that the deterioration of the epidemic situation and the possible introduction of stricter quarantine restrictions may negatively affect income of population, as well as significantly curb the already uneven recovery of domestic demand and economic activity.

The NBU notes that nine members of the committee believe that, given the likely increase in inflationary pressure in 2021, it is unreasonable to reduce the additional discount rate.

Source: www.en.interfax.com.ua