Ukraine Central Bank Holds Key Rate Amid Foreign Aid Uncertainty
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Article content(Bloomberg) — Ukraine left interest rates unchanged amid mounting uncertainty over financial support from international allies for Kyiv’s defense against the Russian invasion. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe National Bank of Ukraine kept the main rate at 15.5% for a sixth meeting, it said in a statement on Thursday. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe decision was taken “given the persisting inflationary risks,” in particular those related to future international financing, as well as to support hryvnia instruments, the foreign exchange market and to control price-growth expectations in reaching the 5% inflation target, the central bank said. Article contentArticle contentUkraine locked in a preliminary agreement with the International Monetary Fund last month on a new financing program of about $8 billion. Still, Kyiv would need to secure “adequate financing assurances from donors” in addition to meeting budget requirements before the program is fully approved by the board, the Washington-based organization said at the time. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe IMF has calculated that Ukraine faces a financing gap of around $136.5 billion from next year through 2029. Article contentThe European Union put forward a proposal last week to tap frozen Russian central bank assets to back a loan of €90 billion ($105 billion) to cover Ukraine’s economic and military needs for the next two years. Belgium, where most of the funds are held, opposed the plan as the US lobbied several countries in the EU to drop the offer, Bloomberg News reported. Article content“International assistance is currently sufficient to maintain an adequate level of international reserves and abstain from monetary financing of the budget deficit, but its future parameters remain uncertain,” the central bank said. Article contentShould uncertainty over financing spur inflationary risks, the central bank “will be ready to refrain from easing its interest rate policy, and will take additional measures if necessary,” it said. Article contentWhile November inflation slowed to below 10% for the first time in more than a year, Russian attacks on the country’s energy infrastructure have caused nationwide rolling blackouts and undermined economic growth. Article contentStill, prices are expected to slow gradually in the coming months, helped by a new harvest, even as inflation expectations remain high, the central bank said. Article contentTrending David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities 'Wild West out there': Cargo theft reports soar in Canada, but that's just the tip of the iceberg News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities 'Wild West out there': Cargo theft reports soar in Canada, but that's just the tip of the iceberg News