NBU alarmed with interest rate policy of state-run banks

The National Bank of Ukraine (NBU) is alarmed with the interest rate policy of state-run banks setting too high the cost of raising money from clients, Director of the financial stability department at the NBU Vitaliy Vavryschuk has said.

"We are alarmed with the interest rate policy of state-run banks… Why state-owned banks compete between each other offering high rates?" he said at a roundtable in Kyiv on Wednesday.

The official said that macroeconomic preconditions for cutting inflation have formed in Ukraine.

"We expect that interest rates would fall and inflation would slow… We have carefully positive expectations for 2017," he said.