December 5, 2017 / 5:09 PM / 2 years ago

Ukraine central bank expected to keep interest rate unchanged: Reuters poll

KIEV (Reuters) - Ukraine’s central bank is likely to keep its key interest rate unchanged at its regular meeting next week as inflation remains high despite a recent slowdown, a Reuters monthly poll showed on Tuesday.

Nine among 11 analysts expect the rate to remain at 13.5 percent while two of them forecast a rise to 14.0-14.5 percent.

The central bank will review its key rate on Dec. 14. In October it raised the rate for the first time since March 2015 on a worsening inflation outlook and warned about the risks Kiev faces if it does not comply with its International Monetary Fund aid program.

The rate was raised to 13.5 percent from 12.5 percent as inflation jumped over 16 percent in August and September year-on-year. In October, inflation slowed to 14.6 percent. Analysts expect a further move down in November and December – to 13.3 percent.

They forecast inflation will decrease to 9.0 percent in 2018. The central bank forecasts inflation at 12.2 percent at the end of 2017 and 7.3 percent next year.

Reporting by Natalia Zinets, editing by Ed Osmond

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