Loans will become more affordable
In 2013, there has been noticeable improvement in banking sphere. The gradual increase of citizens' incomes and absence of price growth stimulated the revival of the mortgage and consumer loans market.
Apparently, planned measures to strengthen the banking system, implemented by the National Bank of Ukraine in the framework of the Program for revitalization of the economy, are already paying off. But, the NBU is not going to stop on that. Thus, the National Bank for the second time during the year has reduced the discount rate from 7.0% to 6.5% (on June 10, it was reduced by 0.5% - to 7% per annum).
Recall that the discount rate is the benchmark for borrowing costs - by reducing it, the National Bank gives a signal to market participants that it is ready to support the trend towards cheaper loans. This measure will allow to gradually increase the volume of loans, both from consumers and from commercial organizations. This, in turn, should lead to increased costs and thereby contribute to economic growth. Also, lending to the real economy will be gradually resumed. These innovations have entered into force on August 13.
"This interest rate adjustment is attributed to a number of factors. First, during the year, consumer inflation has been low, particularly in July, it was zero. Second, improved market expectations - expectations of inflation in the II quarter of 2013 according to the interview of entrepreneurs, has reached its minimum value since 2006" - the General Director of the Department of the monetary policy of the NBU Olena Shcherbakova said.
According to her, now Ukrainians invest more actively in national currency, and thus increase the resource base of the banking system.
She predicts that this trend will continue. This will increase the availability of loans for economic development and significantly affect the life quality of Ukrainians.
Source - the National Bank of Ukraine
20 May 2018 21:09
8 May 2018 13:46