Ukraine Cuts Key Interest Rate For Third Month

Ukrainian monetary-policy makers have cut borrowing costs for a third month, citing a slowdown in inflation and a rebound of the national currency, and promised more easing to come in order to boost lending.

The National Bank of Ukraine announced on June 23 that it was trimming its benchmark interest rate to 16.5 percent from 18 percent.

"The central bank will continue easing monetary policy to support the economic recovery as long as it doesn't conflict with achieving the inflation target" of 12 percent in 2016, the bank said in a statement.

"Inflation pressure eased because of balanced monetary policy and hryvnia strengthening after a favorable environment on global commodities markets."

The step comes after the bank confirmed that the conflict-wracked country had pulled out of an 18-month recession.

Meanwhile, Ukraine's currency, the hryvnya, reached its strongest level since January on promises from the new government to resume a $17.5 billion bailout.

Based on reporting by AFP and Bloomberg