Friday, March 23, 2012

National Bank of Ukraine Cuts Discount Rate 25bps to 7.5%

The National Bank of Ukraine cut its discount rate by 25 basis points to 7.50% from 7.75% previously. The bank also cut the rate for transactions backed by treasury bills and the rate for non-collateral transactions by the same margin to 8.50% and 10.50% respectively.  The bank also eased reserve requirements in order to boost lending to the real sector of the economy.  Ukraine reported inflation of 3% in February and 3.7% in January this year.  The Ukrainian economy grew 4.6% on an annual basis in the December quarter (6.6% in Q3, 3.8% in Q2).  Ukraine's currency, the Ukrainian hryvnia (UAH), last traded around 8.03 against the US dollar.


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