Ukraine's central bank hikes benchmark rate to defend currency

[dipsydoodle]

Source: Reuters

(Reuters) - Ukraine's central bank increased its benchmark interest rate for the first time in eight months on Monday in a bid to defend its currency which has lost almost two-fifths of its value since the start of the year due to the conflict with Russia.

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In an interview on the sidelines of IMF-World Bank meetings in Washington on Sunday, National Bank of Ukraine Governor Stepan Kubiv said Kiev had started working on floating its currency, and planned to move to full inflation-targeting within 12 months.

Ukraine's annual inflation rate was 3.4 percent in March, according to the consumer price index, up from 1.2 percent in February. Inflation was 0.5 percent in 2013 but the government has forecast that will surge to 12 percent this year.

The government has announced an increase of over 50 percent in gas prices for consumers from May 1 after Russia increased its charges.

Read more: http://www.reuters.com/article/2014/04/14/us-ukraine-crisis-rates-idUSBREA3D1EX20140414

[applegrove]

1. Vibes to all the people of Ukraine. Stay

strong. Looks like the Russians are shock doctrining Ukraine.

[dipsydoodle]

3. Its actually the IMF and EU who will be imposing that

by way of the conditions attached to loans - consumers to be charged at least cost price of gas to Ukraine government , devaluation of their currency , selling off state owned assets , cuts in state pensions............

[freshwest]

9. Wasn't the guy that got ousted selling off state assets as well? n/t

[newthinking]

2. This is why more people are hitting the streets

The Hrievna has lost close to a third of it's value in the last month and people are frightened. People are already desperately poor, they can't absorb all the increases in costs. Thank God it is spring.

[dipsydoodle]

5. Devaluation doesn't HAVE much of a bearing on home produce / products -

Last edited Tue Apr 15, 2014, 08:26 AM - Edit history (1)

just imports. The effect of inflation on home produce / products is a different matter. The drop is against the US$ and by reflection the Euro : not necessarily as much against the Ruble.

It might be spring now but

[amandabeech]

7. That is positively cruel.

Your concern for your pocketbook has completely taken your humanity.

[newthinking]

8. It's a global market

and everything there is measured in dollars.

Unfortunately in reality many of the prices were already close or equivalent to what we pay. Used to be able to get cheese, for instance, for 1/3 of what it is in the states, not in recent years, it now costs almost as much there. Fortunately some staples are still cheap, like the price of a loaf of bread (about 50 cents). In the summer in many parts of the country fruits and vegetables drop in price. Clothes there are about the same as here, and in fact prices at our discount stores are less.

[another_liberal]

4. Some updates on recent events in eastern Ukraine.

Note the entry for 6:12 GMT:

Unconfirmed reports from the anti-government protesters in the Ukrainian eastern city of Slavyansk say clashes are occurring on the outskirts of the city, according to Interfax.

“Blasts and gunshots can be heard. Armored infantry vehicles are moving towards the city,” said an anti-government activist who spoke on the condition of anonymity.

Read more at: http://rt.com/news/kiev-clashes-rioters-police-571/

[MisterP]

6. hm! it's almost like they're serving ulterior interests, and all the tales of Russophile murder were

fake, and the fellows who endorse tying Jews and Poles to trees and bayonetting them aren't just overenthusiastic electioneers