Natl Bank of Ukraine cuts refinancing rate
KYIV. June 8 (Interfax) - The National Bank of Ukraine (NBU) cut its refinancing rates on Tuesday, the same day it cut the discount rate to 9.5% from 10.25%. The Lombard rate has been cut 1 percentage point to 10.5% annually and the unsecured rate 0.75 p.p. to 12.5%, the NBU told Interfax.
"A sizable reduction in rates is justified at this stage because it is a factor in price stability and affects the expansion goods offers," the head of the group of advisors to the NBU chairman, Valery Litvitsky, told Interfax.
It is the first synchronized cut in the discount and refinancing rates since August 2009. "The spread between the rates is minimal at 1-3 p.p.," Litvitsky said.