Ukraine raise interest rates to protect the economy
Accordingly , since yesterday (14 /4) , the discount rate will increase from 6.5 % to 9.5 % , in order to help consolidate Ukraine currency and curb inflation . Ukraine hryvnia has lost more than a third against the dollar since the beginning of the year , making efforts to stabilize the economy as having .
Inflation in March of this country is 3.4 % , more than double February . Ukraine’s exports also plummeted , as the new government tries not to collapse and foreign exchange reserves fell sharply because investors withdrawal from rushing .
Ukraine has raised interest rates to protect the economy . Photo: Axxonsoft
This is the largest rate increase of Ukraine since 1998 . Yet , according to analysts at Commerzbank , the move was hopeless . ” Raising interest rates will not stop the currency plunge as political tension and military escalation , Ukraine ‘s economy also faces the risk of a deep recession ,” they said.
International Monetary Fund ( IMF ) has approved the country $ 18 billion . However , analysts still unclear whether this move may appease investors are worried about the growing conflict between Kiev and Moscow or not .
Western Ukraine and Russia are guilty of intentionally causing unrest in eastern Ukraine before the election last May . Secretary Russia – Sergey Lavrov has denied accusations that Russia ‘s military presence in this region .
Yesterday , protesters had occupied the police headquarters in the northern city of Ukraine – Horlivka . Kiev responded with an ultimatum calling this forces surrendered , but was ignored .
Last month , Russia announced merger of the Crimean peninsula of Ukraine in his country . This has led the United States and Europe imposed sanctions on several individuals and companies related through Russia . Yesterday , in a meeting with the foreign ministers of the European Union , British Foreign Secretary – William Hague said that Russia should be subject to much further sanctions because of his behavior .