EAVEX Weekly

March 18, 2019

Ukraine’s domestic equity market had no reaction to the National Bank’s decision last week to hold its key refinancing rate at 18.00%. The central bank said that tight monetary conditions continue to be an important factor to bring consumer inflation down to the 5% target in 2020. Currently the NBU’s projection is that inflation will decelerate to 6.3% this year from 9.8% registered for 2018. The next meeting of the NBU Board on monetary policy issues is due to be held on Apr 25. The central bank has maintained its key policy rate at 18.00% since the last rate rise in July 2018. In other news from the National Bank, there was a report that the international central securities depository Clearstream has signed the correspondent relations agreement to open a securities account at the Depository of the NBU. It was a historical move which will simplify the access of foreign investors to the Ukrainian securities market. Settlement of UAH-denominated domestic government securities through th