The Board of the National Bank of Ukraine (NBU) has decided to cut its 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," the bank said on its website.
In November 2019, consumer inflation decreased sharply, reaching 5.1% year on year, which was below the NBU's latest forecast. Thus, inflation reached the medium-term target of 5%, set by the NBU 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. Inflation slowed markedly due to both the strengthening of the hryvnya and an improvement in inflation expectations. The above factors neutralised the pressure on prices from robust consumer demand and worse harvest of some vegetables," the bank explained.