Is Ukraine waiting for a price hike – NBU comment

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Deputy head of National Bank Dmitry Sologub explained how the crisis will affect inflation

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Whether Ukraine is waiting for a sharp rise in prices – National Bank comment. Photo: incarabia.com

As of 2020 results, inflation in Ukraine will remain within the target corridor defined by the National Bank of 5% +/- 1 PP, possibly slightly higher. This indicator is predicted by Deputy Chief of NBU Dmitry Sologub, report Interfax.

The expert said the regulator does not see “fundamental reasons” for the sharp spike in prices and significant inflation problems, provided that Ukraine remains in the current scenario. This includes an active fight against the crisis, aid from the IMF and other international financial organizations.

According to Sologub, Ukraine is now better prepared for the crisis than in previous years. In particular, due to the adequate liquidity of the banking system, the availability of all means to sustain it, the ability of the government to support the economy with fiscal measures, and the reduction of the NBU rate as part of monetary stimulus.

According to the National Bank, at the end of March, annual inflation Will be below 3%.

Cologne said the government’s estimate of a 5% decline in GDP this year is quite realistic based on the current situation. However, the final forecast is not yet available. Commenting on the impact of the current situation on the amount of transfers of Ukrainians from abroad, the NBU Deputy Chief suggested that this year it could fall to $ 2-3 billion after a record $ 12 billion in 2019.

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At an extraordinary meeting of the Verkhovna Rada on Monday, March 30, deputies adopted “anti-crisis” Bill No. 3275 on additional social and economic guarantees regarding coronoviruses.

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