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subsidiary, Prominvestbank, businessman Pavel Fuchs, as the National Bank of Ukraine refused to authorise a deal. However, Kommersant now reports that VEB refused to sell the bank, the Russian daily reports, citing sources close to VEB and Prominvestbank. Now VEB has decided to simply close the bank down, reports Kommersant. VEB has also been in talks with the owner of the Ukrainian group DCH Alexander Yaroslavsky. However, Yaroslavsky is now more interested in buying Ukrainian Sberbank, according to Kommersant. VEB's losses from the closure of Prominvestbank may amount to about RUB13bn ($192mn), according to Expert RA cited by the paper.
8.2 Central Bank policy rate
The NBU’s tight approach to monetary policy. The regulator raised its key rate to 17.5% in mid-July and is gradually pushing commercial rates up.
As a result, a larger proportion of incomes is flowing into deposit accounts rather than being spent on current consumption. Looking ahead, a possible increase in regulated gas prices could significantly contribute to inflation. SP Advisors maintain its end-2018 CPI forecast at 8.9%.
8.3 Stock market
8.3.1 Equity market dynamics
The UX index added 1.9% to close at 1636 points in July. However, the trading activity was low amid the continued closure of the largest platform, which led to a wider bid/ask spread for most blue chip stocks.
The index suffers from very low liquidity indeed, making it very volatile. The spreads of around 5% somewhat distort the UX index’s performance since the average spread midpoint is larger than the overall index gain.
48 UKRAINE Country Report September 2018 www.intellinews.com