Analysts are divided on whether Ukraine’s central bank will raise its prime rate tomorrow or hold it steady

Wednesday, March 3, 2021
Analysts are divided on whether Ukraine’s central bank will raise its prime rate tomorrow or hold it steady

Analysts are divided on whether Ukraine’s central bank will raise its prime rate tomorrow or hold it steady, a Reuters poll showed Tuesday. Half of 16 Ukrainian analysts predict the National Bank of Ukraine will keep the interest rate at its historic post-1991 independence low of 6%, to help businesses. Industrial output, which started recovering in December, shrank 4% yoy in January. The other eight analysts believe the central bank will raise the rate: six expect 6.5% and two expect 6.25%. Inflation jumped to 6.1% in January, above expectations and above the interest rate.

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