Ukraine's central bank cuts key interest rate to 7.5 percent
2012-03-26 15:11:07
The Ukrainian National Bank (NBU) announced Friday its decision to reduce the key interest rate by 0.25 percentage points to 7.5 percent starting from the day, the press-service of the NBU said.
The latest cut in the key interest rate came as a surprise. This is the first time for the central bank to reduce interest rates this year. The previous one was in September 2010.
The downturn on the world markets, the strong Ukrainian currency hryvnya and the need to maintain economic activity at a safe price level were among the reasons for the interest rate reduction, the NBU said in a statement on its website.
The Ukrainian economy is showing signs of recovery, with the consumer prices in February rose just 3 percent year-on-year, the report said.
Given the medium-term outlook for inflation, the NBU was cautious to hold it steady at 7.9 percent at the end of 2012.