Ukraine May Cut Interest Rates, Central Banker Says (Update1) - Bloomberg.com

Ukraine May Cut Interest Rates, Central Banker Says (Update1) - Bloomberg.com: "April 20 (Bloomberg) -- Ukrainian monetary policy makers may lower the benchmark interest rate, the highest in Europe, if inflation slows, said Valeriy Lytvytskyi, an adviser to central bank Governor Volodymyr Stelmakh."

Finally, the NBU tries to manage domestic interest rate, which is killing the recovery of the economy by depressing investment. Unfortunately, inflation is still high despite considerable negative shock to the aggregated demand. The high inflation can be partially explained by the 2008 sharp hryvna devaluation followed by another devaluation in 2009. Still, the exchange rate pass-through should be already fully adjusted, yet high inflation persist despite stabilization of exchange rate.