NBU expects slight increase in deposit rates

"So far we do not see banks increasing deposit rates on a massive scale, but it is clear that the downward trend in rates has stopped. Especially in the corporate segment and short-term deposit agreements," Solohub said at a briefing, Ukrinform reports.

According to him, this is a common thing in the context of inflation targeting, which has been taking place in Ukraine for the past five years.

"In terms of targeting the transmission of deposit, and then credit, rates occur with a certain lag. As there are other structural factors. Now, for example, we have a significant liquidity surplus of banks, which reduces the incentives of banks to respond to NBU decisions. Eventually, they will respond, and an increase may take place, although it will be insignificant. However, everything will depend on the further direction of monetary policy," Solohub said.

As reported, in May, the growth in consumer prices reached 9.5% in annual terms. Therefore, the National Bank kept the discount rate at 7.5% per annum.

iy