Five out of ten members of the Monetary Policy Committee (MPC) of the National Bank of Ukraine (NBU) believe that the key policy rate should be further raised this year.
“The NBU will have to further raise the key policy rate this year to ensure that inflation returns to its 5% target in 2022, five MPC members proposed. In contrast, the other half of the MPC did not rule out that previous key policy rate hikes and the rollback of anti-crisis monetary measures may prove sufficient to ease inflationary pressures,” reads the report posted on the website of the central bank, Ukrinform reports.
The decision to keep the key polity rate at 7.5% per annum was approved by the NBU Board at the monetary policy meeting held on June 17, 2021. Seven MPC members then called for maintaining the key polity rate at 7.5%, whereas three called for its increase to 8%.
As reported by Ukrinform, the NBU decided to raise the key policy rate to 7.5% from April 16. Earlier, on March 5, the NBU decided to raise its key interest rate to 6.5% from 6%.
The key rate of 6% has been in place in Ukraine since June 2020, and the NBU Board has kept it at the same level since last summer.