Evidence for these effects is provided by Gertler and Karadi (2015), who show that relatively small changes in short-term interest rates are correlated with large movements in credit costs. Such correlations and interactions may explain why some types of spending appear to be more correlated with movements innominal interest rates than with real interest rates; see Fair (2004, ch.
*** Dear colleagues, The Board of the National Bank of Ukraine has decided to keep the key policy rate unchanged at 25% per annum and to continue raising required reserve ratios for banks. This will facilitate a further increase in the attractiveness of hryvnia assets, support exchange rate stability, and gradually slow inflation.