- ICU view: The messages from the debut press conference of the new Chairman of the NBU indicated that the NBU continues to expect an increase in interest rates for local currency bills and considers such an increase necessary to improve the efficiency of the transmission mechanism.
- At the same time, all messages were delivered in a soft and constructive manner, so it is most likely that the NBU and the Ministry of Finance will try to avoid heated public discussions about interest rates in the future and will hold talks in a closed format.
- If interventions grow further, the NBU may have to reconsider the feasibility and possibility of maintaining the official exchange rate unchanged, even amid generous inflows of international financial aid.
ICU Weekly Insight: 25 October 2022
