EAVEX Weekly

June 22, 2021

The National Bank decided to hold its key refinancing rate steady at 7.5% despite consumer inflation that accelerated to 9.5% in May. Our expectation of no rate hike by the monetary policy board proved correct, although most market analysts had predicted an increase in the key rate by 50-100 bps. The next decision on the policy rate will be on Jul 22 and there is a high probability that the rate will be raised to 8.0%.