Ukrainian level of inflation will exceed forecasts
The level of inflation in Ukraine at the end of 2017 may be higher than the current forecast of the National Bank of Ukraine at 9.1%, which may force the NBU to apply a more stringent monetary policy, reads a statement on the central bank’s website referring to Deputy NBU Governor Dmytro Solohub.
During a traditional meeting with the heads of the largest banks, Solohub said that the pressure of temporary factors provoked in Ukraine a rise in prices for meat and dairy products, vegetables and tobacco products.
"Monetary policy must respond to changing fundamental factors. Therefore, we will carefully monitor that these temporary factors not turn into fundamental ones. In addition, inflationary risks can be realized in the context of fiscal policy. If, as a result, we see high risks of non-return of inflation to targets, we will respond with a tight monetary policy," Solohub said.
As reported earlier, the National Bank in September 2017 decided to keep the key rate at 12.5%, as well as in the two previous months - July and August. According to the regulator’s estimates, inflation this year will deviate more significantly from the central point of the target range at 8% plus or minus 2 pp at the end of 2017.
Source: UNIAN