By KYIV. Nov 24 (Interfax-Ukraine) – President of the Association of Ukrainian Banks (AUB) Andriy Dubas has said that current deposit rates could be maintained with the expected acceleration of inflation to 8-10% next year and the NBU key policy rate within 14-16%.
“If you look, for example, at the UIRD [Ukrainian Index of Retail Deposit Rates] … then I see that these rates have already responded to the latest decision of the National Bank on [reducing] key policy rate – 16%, and, I think that it will remain within these limits somewhere, and maybe even throughout 2024,” the AUB president told Interfax-Ukraine.
“…deposits will most likely be within the limits they are now,” Dubas added.
Speaking about the reasons for the rapid decline in inflation in October of this year to 5.3%, the president of the association, first of all, noted the maintenance of a moratorium on increasing prices for utilities, adaptation of the population to wartime conditions, logistics problems that impede the export of agricultural products, as well as blockade of ports.
“I also believe that one of the important points is that, according to various estimates, about 6 million people left Ukraine. These are young, middle-aged people, they worked in Ukraine before the start of the war, earned money and this money they also spent in Ukraine… Today, they are consumers in other countries,” Dubas said, listing the factors that influenced the slowdown in inflation.
