Ukraine Keeps Main Rate Unchanged on Risks to Inflation Forecast
- Central bank still sees CPI at 12% in 2016, cuts GDP forecast
- Commodity, currency markets among risks to inflation outlook
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Ukraine’s central bank left its benchmark interest rate unchanged for a third meeting, affirming this year’s inflation forecast while warning of risks from commodities and currency markets, and trimming its outlook for economic growth.
The discount rate will stay at 22 percent, the National Bank of Ukraine said Thursday in a statement, matching the forecasts of three of four economists in a Bloomberg survey. The bank sees consumer prices rising 12 percent in 2016, with gross domestic product advancing 1.1 percent, less than half its previous 2.4 percent projection. Governor Valeriya Gontareva will hold a news conference at 2 p.m. in the capital, Kiev, to discuss the decision.