The head of FC “Leogang Drink” Alena Shevtsova: the NBU increased the discount rate

As stated by the head of FC “Leogang Drink” Alena Shevtsova, the reason why the national Bank of Ukraine raised the discount rate, not in the short-term decisions and in long economic and political perspective.

“The national Bank of Ukraine should consider the risks of the approaching business season and the campaign,” she said. The objective of the National Bank of Ukraine to increase interest rates to prevent a new crisis and to continue the development, said the head of the financial company “Leogang Drink” Alena Shevtsova comments in the “112 Ukraine”.

“One of the pillars of the monetary policy the National Bank is maintaining stability of the national currency. And to accomplish such a task, the controller needs to work for the future, to consider the risk factors both on the part of the approaching business season, and the race of political forces”, – she noted. Income for the year increased by 28% due to indexation of salaries in connection with the increase in remittances from abroad, helped by growth of labour emigration, the expert said.

“$4.5 billion – just as the Ukrainians were transferred to Ukraine, working abroad. And this is 8.4% of GDP. The figure is significant, and this is not the ceiling, because the trend hasn’t peaked,” – said Alyona Shevtsova, adding that times rising real incomes, then, should expect higher prices, and therefore inflation in the third and fourth quarters.

These processes, of course, will affect policy, says Shevtsova, since before the election, perhaps the next increase in the minimum wage or pensions without regard to objective indicators, and this can undermine the economic situation. The Chapter “Leogang Drink” stressed that the NBU has no political ambitions, but is the goal to prevent a new crisis and continue to develop, so the decision to raise the discount rate – is absolutely correct, as in the current year Ukraine almost does not lag behind the planned targets of the budget, and lose the result would be a big mistake.

The national Bank of Ukraine from July 13, 2018, increased the discount rate to 17.5%. It is necessary to return inflation to within the target range in 2019, the head of the National Bank of Ukraine Yakov Smoliy. March 1, 2018, the NBU increased the discount rate to 17%, and on 12 April made the decision not to change it. The discount rate determines the rate of interest charged of the NBU refinancing of commercial banks.

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