Cabinet and NBU, conflict or cooperation?

There developed a conflict between the Cabinet and the NBU because of one more increase in the discount rate. NBU admits that it will continue to raise the discount rate. This was mentioned in the results of the meeting of the members of the NBU’s Monetary Policy Committee on the level of the discount rate, which was published on February 6 by the National Bank.

“The majority of the members of the Monetary Policy Committee concluded that there is a possibility of a further increase in the discount rate in future at absence of significant signs of the reduction in inflationary pressure,” the minutes of the last meeting said. 

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