This will also help decrease production costs in Ukraine. Underlying inflationary pressures will also gradually ease, due to, among other things, the expected slower growth in wages next year, and the sustained effect of the monetary policy tightening by the NBU. What were the other considerations behind today’s decision?
A key factor behind the reduction in uncertainty was the IMF Executive Board’s approval of the first review of Ukraine’s progress in implementing the Stand-By Arrangement and the extension of this arrangement until June 2022. This factor partly offset the effect of stronger geopolitical risks on the financial markets.