Ukraine National Bank minutes show 7–3 vote to hike key rate to 16%
Seven of the 10 members of the Monetary Policy Committee (MPC) of the National Bank of Ukraine at a September 16 meeting spoke in favor of raising the key policy rate from 15.5% to 16%, taking into account persistent underlying price pressures, the continued emergence of second-round effects from supply shocks and increased medium-term inflationary risks.
The National Bank of Ukraine's Monetary Policy Committee voted 7-3 in favor of raising the key policy rate to 16% during a meeting on September 16. This decision was based on persistent underlying price pressures, the emergence of second-round effects from supply shocks, and increased medium-term inflationary risks. The higher rate would make hryvnia-denominated assets more attractive, maintain foreign exchange market stability, and protect international reserves, which is crucial for controlling inflation expectations and processes.
However, three members argued for maintaining the rate at 15.5%, citing subdued core inflation dynamics and a cooling of economic activity. They expressed concerns about the dynamics of inflation expectations among respondents and the deteriorating information environment regarding everyday consumer goods prices. Additionally, they pointed out the impact of Russia's aerial attacks on consumer demand, which could further restrain inflation in subsequent periods.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
