First, on the domestic front, developments in house prices and the rapid increase in mortgage credit pose some concerns. I continue to believe, however, that a soft landing in this market is the most likely scenario, although there is no room for complacency. Secondly, as a very open economy, we are vulnerable to adverse developments in the global economy.
Although the effects of these individual factors are insignificant, their combined impact on inflation expectations could be substantial, on the back of greater uncertainty arising from presidential and parliamentary elections. On the other hand, a more noticeable strengthening in the hryvnia exchange rate than is envisaged in the current forecast, is helping curb inflation.