The growth in inflation in the first months of 2021 was driven by a number of factors. Among them were: higher food and fuel prices stronger inflationary pressures from trading partner countries sustained domestic consumer demand. Moreover, prices continue to be influenced by the effects of last year’s hryvnia depreciation. How will inflation behave in the future?
This is especially important, since the € is the basis for the overnight interest rate swap curve, along which the market prices expectations of future policy. The reaction was similar across deposits by banks and by the different types of non-bank financial institutions that are active in the money market.