The national Bank of Ukraine once again decided to leave unchanged interest rate at 18% per annum. The corresponding decision №88 “rate” approved by the Board of the Central Bank on 31 January 2019. About it reports a press-service of the NBU.
“The NBU Board decided to keep interest rates at 18% per annum. Maintaining the discount rate at this level is aimed at reducing inflation to the target of 5% in 2020”, – stated in the message.
High discount rate increases the “cost” of money in the economy, this slows lending, growing lending rates on the interbank market, and after – and in commercial banks. As has told the expert of the International centre for policy studies Egor Kiyan, the flip side of high interest rates – slowing economic growth.
It is worth noting that loans are becoming more expensive by about 70% of the rise in the discount rate.
Of the NBU in the previous two meetings of the monetary Committee on December 13 and October 25, 2018, have kept interest rates at 18% per annum. To this, the Central Bank six times raised the cost of money. Last time, the NBU raised the discount rate September 7 – 18%.