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KIEV, February 5. /TASS/. Inflation in Ukraine will reach 18.3% by the end of the year, Deputy Director of the National Bank’s General Economic Department Sergey Nikolaichuk said on Thursday.
Ukraine’s GDP fall is currently estimated at 10% and last year the country’s economic output contracted by 6.7%, he said.
The National Bank of Ukraine will raise its key rate to 19.5% from February 6, the regulator’s press office reported on Thursday.
"A decision was made to raise the key rate to 19.5% from 14.0% from February 6, 2015 with the subsequent adjustment of rates on active and passive operations of the National Bank," the regulator said in a statement.
Starting from February 5, the National Bank is suspending daily currency auctions and giving up the hryvnia’s indicative exchange rate. The hryvnia exchange rate will now be set by banks proceeding from objective parameters of market demand and supply, the regulator’s press office said.
"This will help eliminate uncertainty, facilitate greater efficiency and objectivity of the pricing mechanism for credit resources and foreign currency on the interbank market and make the National Bank’s monetary instruments more effective," the regulator said.