National Bank is preparing to change the discount rate soon - expert

25 December 2022, 12:16 | Economy
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The National Bank may prepare to reduce the discount rate below the current level (25%) before the second quarter of 2024. Associate expert of CASE Ukraine, former Deputy Director of the NBU Financial Stability Department Evgeniy Dubogryz suggested this on his Facebook page..

" This is what the National Bank is slowly preparing, as they say, the ground to start lowering the rate. In the sense of reducing before the indirect "

According to him, it is impossible not to notice that the rhetoric of NBU speakers regarding the discount rate in public speeches is softening..

" ) traced. And in public speeches of speakers too. If until November, approximately, the rhetoric was clear - " ) 2024\; as the conditions change, then maybe we will reconsider,"

However, he adds, this is possible under certain conditions, but it’s too early to say how events will go..

" Everything is changing too fast. No one really can afford a planning horizon of 5-6 quarters now. Under certain conditions, it will really be necessary to reduce.

In others - I'm a cautious pessimist here - perhaps it will be necessary to increase it,"

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Earlier it was reported that the NBU Monetary Policy Committee once again unanimously spoke in favor of maintaining the discount rate at 25%. However, some members of the committee allow for a rate cut of 2-4 percentage points as early as next year.. This was reported by the press service of the NBU following the discussion on December 7.




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