* * * 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?
The Committee first adopted the “substantial improvement” test at the September 2012 meeting, so it is appropriate to measure the economy’s progress against economic conditions at that time. When the Committee met in September, the unemployment rate stood at 8.1 percent. Today, just nine months later, the unemployment rate is 7.6 percent – a larger decline than most FOMC participants expected in September.