Overall, however, the ratio of nonfinancial-sector borrowing to gross domestic product has been below an estimate of its trend for several years as a result of the deleveraging of the household sector following the crisis.
First, rising geopolitical tensions are affecting prices of Ukrainian assets and FX market conditions. Second, global prices for natural gas and food exceed the NBU’s expectations and are likely to remain high in the coming months. Third, higher global inflation is prompting leading central banks to step up their monetary policy tightening.