Having analyzed the behavior of macroeconomic and monetary indicators in the current year, the Board of the National Bank of Ukraine pointed out that the figures suggested a continuation of positive trends in the monetary sphere.
In May 2013, the Consumer Price Index had grown by "minus" 0.4 % year on year. Over a period of more than one year, the consumer price inflation has remained in negative territory or close to zero.
Achievement and retention of the price stability has helped preserve the value of individual savings, boost pricing advantage of Ukrainian manufacturers on foreign and domestic markets, and has laid foundations for further positive developments in the macroeconomic area and in the financial market.
At the same time, market expectations have continued to brighten up. It is corroborated by a rapid surge in household deposits in the national currency (by 18.1 %), which was recorded in January – May 2013. It was accompanied by a simultaneous decline in household deposits in the foreign currency (by 0.2 %) and the improvement in deposit maturity structure - the portion of long-term deposits in their total volume went up by 2.5 percentage points to 37.2 %.
The deposit growth contributed to an increase in the banking system’s liquidity. In January – May, the average daily balance banks' correspondent accounts with the National Bank of Ukraine climbed to UAH 24.9 billion versus UAH 19.6 billion in the respective period of the last year.
High level of the banking system's liquidity entailed a reduction in the cost of bank loans. In particular, the average weighted interest rate on loans in the national currency went down from 17.6 % in December 2012 to 15.6 % in May 2013, whereas that for the national currency funds on the interbank credit market fell from 8.1 % to 4.0 % respectively.
The recession trends dominating the world economy weighed on the economic development of Ukraine. In Q1 2013, real GDP contracted by 1.3 %, marking the third consecutive quarter of decline.
Considering the above, with a view to reinforcing positive trends in the monetary sphere and promoting economic growth, pursuant to Articles 6 and 25 of the Law of Ukraine “On the National Bank of Ukraine”, Regulation on the NBU Interest Rate Policy approved by NBU Board Resolution No. 389 of 18 August 2004 registered with the Ministry of Justice of Ukraine on 2 September 2004 under No. 1092/9691 (amended), and guided by the goals and objectives set forth in the Main Principles of the Monetary Policy for 2013, the Board of the National Bank of Ukraine approved Resolution “On the Money Market Regulation” No. 209 of 6 June 2013 that stipulates that the discount rate should be set at 7 % per annum (effective from 10 June 2013).
For reference. Pursuant to item 1 of NBU Board Resolution “On the Money Market Regulation” No. 102 of 21 March 2012, the discount rate is set at 7.5% per annum (effective from 21 March 2012)..