* * * Dear colleagues, Please be informed that the Board of the National Bank of Ukraine has decided to cut the key policy rate to 13.5% per annum effective 13 December 2019. The NBU speeds up the monetary policy easing, as the rapid appreciation of the hryvnia makes inflationary pressures decline faster than expected. What inflation developments followed the last monetary policy meeting?
In November, consumer inflation slowed to 5.1% yoy, exceeding our expectations. In such a way, the NBU attained the medium-term target of 5%, which was set in 2015. The steady disinflation has been driven by a gradual easing of underlying pressures on prices, reflected in a slowdown of core inflation, and by lower energy prices.