KIEV: Ukraine’s inflation is likely to remain low and prompt the central bank to ease monetary policy further, a Reuters poll of analysts showed on Tuesday. In April, inflation slowed into single digits for the first time in two years, tumbling to 9.8 percent year-on-year. Analysts see it slowing to 8.3 percent in May compared with 58.4 percent in the same month a year ago.
The slump in inflation has allowed Ukraine’s central bank to cut the main rate for the first time since September, lowering it to 19 percent from 22 percent in April and then to 18 percent in May. The bank said it would continue to ease policy if the disinflationary trend continued. Analysts from 10 Ukrainian banks and brokerages expect the central bank to cut the main rate to 15.0 percent by the end of 2016 and saw inflation at 13.7 percent in December.
