Ukraine

Ukraine’s central bank lowered its key policy rate by a percentage point to 13.5% amid slowing inflation and the inflow of a substantial USD 61 bln US aid package. This rate cut follows an initial easing last month. With the anticipated USD 38 bln in financial aid for the year, Ukraine’s international reserves are projected to reach USD 43.4 bln by year-end, up from a previous estimate of USD 40.4 bln. The central bank also indicated the likelihood of further easing capital controls soon.