NBU reduces discount rate to 6.5%

August 13 this year, the National Bank of Ukraine reduces discount rate from 7% to 6.5%, director of the general department of the monetary policy of the NBU Olena Shcherbakova told a briefing, ForUm correspondent reports.

"The Board of the NBU decided on August 13 to lower the discount rate from 7% to 6.5%. I want to remind you that the discount rate is a benchmark of the monetary policy and signals to the market participants that the National Bank intends to implement policies to reduce the price of credit resources," she said.

According to Shcherbakova, decrease in the discount rate became possible due to the absence of inflation in Ukraine, as well as due to positive market expectations.

In addition, the banker stressed that an increase in deposit base by almost 20%, mainly in local currency, has been recorded in Ukraine from the beginning of the year.

Shcherbakova also informed that maturity of deposits grows. "We estimate this as an indicator of public confidence in our banking system," she said.

According to the director of the department, reducing the NBU discount rate would lead to cheapening credits and, consequently, to an increase in lending to Ukrainian economy.

"It is clear that the economy is in need of credit, and we very much hope that lending will revive, there will be the projects, and the banks will lend," the banker said.

Shcherbakova also reported that the overnight rate will drop to 7.5%.