This process is currently underway, and if it sounds more like a damage report rather than the anatomy of a paradigm shift, this may reflect the close range of our current perspective. Among the jumble of likely causes and hypotheses, it is difficult to fit all the pieces together and assign proper weights.
They include: volatile global capital markets a more dramatic deterioration in the terms of trade an escalation of the military conflict in eastern Ukraine or on the country’s borders. Given the above balance of risks and the significant rise in underlying inflationary pressures seen in recent months, the NBU Board decided to raise the key policy rate, to 6,5%.