Page 56 - UKRRptOct20

The Council of the National Bank of Ukraine (NBU) appointed on September 4 Yaroslav Mazutka to the position of deputy NBU governor responsible for internal operations, Interfax-Ukraine reported citing a Council member. Before the appointment, Mazutka served as top manager of state-controlled Privatbank responsible for legal work and operations. ​A week earlier​ ​the NBU Council dismissed Roman Borysenko​ from the position of deputy NBU head. He was the fourth member of the NBU’s executive board (which consists of the NBU head and five deputy heads) to lose his position since the beginning of July.
8.2 ​Central Bank policy rate
Board of the National Bank of Ukraine (NBU) made a decision to keep the key policy rate unchanged at 6%,​ the regulator said on its website on September 3.
"The NBU Board has decided to keep its key policy rate at 6% per annum. Maintaining a loose monetary policy will support economic recovery amid moderate inflation and elevated uncertainty over how the pandemic is going to spread in Ukraine and the world," NBU said.
In other news, NBU expects a mission of the International Monetary Fund (IMF) in the near future and funds from the IMF by the end of 2020, NBU Governor Kyrylo Shevchenko was quoted as saying by Interfax Ukraine.
"The main assumption of our forecast is further cooperation with the IMF... We expect an IMF mission in the near future and plan to receive more money from the IMF by the end of the year," he said.
The NBU said in its statement on the decision:
The NBU Board has decided to keep its key policy rate at 6% per annum on September 3. Maintaining a loose monetary policy will support economic recovery amid moderate inflation and elevated uncertainty over how the pandemic is going to spread in Ukraine and the world. In July–August, inflation was below the target range of 5% ± 1 pp. The dynamics of core inflation were subdued. The revival in consumer demand and the rise in fuel and natural gas prices in line with global market trends were offset by seasonal adjustments in raw food prices.
Future movements in inflation will depend on how fast the economy recovers.
Data on imports, the retail trade, and household expenditures on domestic tourism, real estate, and cars indicate a further recovery in consumer demand, which is likely to continue in the coming months. The NBU’s monetary policy easing cycle and the government’s fiscal stimulus, including changes in social standards, will support this trend. At the same time, energy prices will continue to increase as the global economy gradually recovers from the coronavirus crisis. The statistical effect of the low comparison base formed in the final months of last year will make a significant contribution to the overall rate of inflation. All of this paves the way for inflation to enter the target range by the end of the year.
56​ UKRAINE Country Report​ October 2020 ​ ​www.intellinews.com