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Ukraine Cuts Main Interest Rate Amid Disinflation

Ukraine’s central bank has cut its main interest rate to 19 percent from 22 percent, citing a "significant easing in risks to price stability.”

The National Bank of Ukraine said on April 21 it would make further cuts if disinflation continues and the country’s $17.5 billion bailout is resumed.

“The key risk now is a delay in restarting cooperation with the International Monetary Fund (IMF),” it also said.

The bank kept its 2016 inflation goal of 12 percent, and said it should be able to ease capital controls once cooperation with the IMF resumes.

Consumer-price growth decelerated to the lowest level in 1 1/2 years in March, while the new government approved last week eased a two-month political crisis that delayed aid disbursements.

New Finance Minister Oleksandr Danylyuk has said the next $1.7 billion tranche from the IMF may arrive next month.

Based on reporting by TASS and Bloomberg

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