The National Bank of Ukraine (NBU) notes the risks to price stability in raising the minimum wage, political tensions and a high probability of a delay of the next tranche of the International Monetary Fund.
”Since the previous decision on monetary policy, the risks for future inflation dynamics have been increased, which force the National Bank to carry out a more restraint easing of monetary policy,” the NBU said.
First of all, as noted by the regulator, the risks are caused by a sharp increase in the minimum wage to UAH 3,200 from January 1, 2017, which will add about 1 percentage point to the index of inflation of the next year.
In addition, among the risks to price stability, the regulator noted the increase in political tension and a high probability of a delay of official financing from the International Monetary Fund due to the slow pace of reforms.
