Investor Presentaiton slide image

Investor Presentaiton

July 2020 Prudent monetary policy implemented by independent regulator Medium-term consumer inflation target range: 5%+/-1% Y-o-y inflation as of June 2020: 2.4% Comments The NBU is significantly softening its monetary policy maintaining the cycle of key policy rate cuts on the back of UAH appreciation and decelerated inflation On June 11, the Board of the NBU decided to cut its key policy rate from 8.0% to 6.0%, its neutral level, indicating the end of the cycle of rapid monetary policy easing. Overall, the key policy rate was reduced by 7.5 p.p. since the beginning of 2020, reaching the historic low over Ukraine's independence Due to relatively tight monetary conditions and UAH revaluation, the NBU brought inflation to its medium-term target (5% +/-1%) in 2019 vs. end-2020 planned initially 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% CPI expectations for the following 12 months 16% 14% 12% 10% 8% 6% 4% 2% 0% Apr-18 Source NBU Banks Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Businesses Aug-19 Households Oct-19 Dec-19 Feb-20 7.0% 7.3% 28 5.9% 5.8% 32 222222 26 24 Apr-20 Jun-20 Financial analysts 1 Feb-18 Consumer price index (CPI) change and key policy rate Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Key policy rate, % - CPI, y-o-y, % UAH/US$ and UAH/EUR exchange rates dynamics 38 Notes Apr-18 As of June 24, 2020 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 EUR Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 7 Apr-20 Jun-20 30.11 26.61 BA 6.0% 2.4%
View entire presentation