The national Bank raised the discount rate by 1%

Нацбанк повысил учетную ставку на 1%

National Bank raises interest rate

The NBU decided to tighten monetary policy.

The national Bank of Ukraine increased the discount rate of Ukraine to 13.5%. On Thursday, October 26, reported the press service of the regulator.

The national Bank believes that tight monetary policy will help to reduce consumer inflation.

The regulator notes that consumer inflation in September 2017 accelerated to 16.4% yoy and exceeded the forecast trajectory National Bank.

“This is primarily due to a faster growth of food prices, rising production costs and some recovery in consumer demand”, – stated in the message NBU.

As in previous months, due to factors on the supply side in the domestic market of high growth of prices for fruit and vegetables, meat and dairy products.

Also, core inflation in a certain way it affected the growth of prices for services due to an increase in production costs, including through de-shadowing of wages in the background doubling the minimum wage at the beginning of the year.

We will remind, last month the NBU said that in the near future do not plan to raise interest rates.

Also we will remind, in July the national Bank of Ukraine has kept the discount rate at 12.5% per annum.