NBU decreasing refinancing rate from 18% to 16.5% from June 24

The National Bank of Ukraine (NBU) from June 24 decreases refinancing rate from 18% to 16.5%.

The press service of the central bank reported that this is outlined in NBU Board decision No. 88-rsh dated June 23, 2016 on the size of refinancing rate.

"The further mitigation of the monetary policy in general is in line with the inflation targets for 2016 and 2017. It is made in the conditions of the stable decrease of inflation pressure, improvement of inflation expectations and stable situation on the currency market," the NBU said.

The central bank said that the favorable foreign economic situation helped to increase exports revenue arriving to the country and improve the situation on the currency market.

"The NBU bought foreign currency to expand forex reserves and did not hinder the moderate strengthening of the exchange rate linked to fundamental factors," the central bank said.

The situation on global commodities markets would influence the state of the currency market.

Repatriation of dividends started on June 13, 2016 would not destabilize the market.

The key factor for achieving price stability in the medium-term outlook is the completion of the second revision of the Extended Fund Facility (EFF)program with the International Monetary Fund (IMF).