Following the Bank of Russia refinancing rate cut to 10.75 pct on August, 10, Ukraine cuts key interest rate to 10.25 pct. The announced goal is to stimulate the real sector. It is not evident how quickly the banking sector will respond to the cut because there is announced interest rate is not directly linked to rates set by commercial banks. Also, there is a threat of accelerating inflation.
Still, it is a positive sign that the economy will start recovering sooner than expected.
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