The National Bank of Ukraine (NBU) may raise its key refinancing rate to at least 18% in September, bankers polled by Interfax-Ukraine say. “The refinancing rate in September may grow by 0.5%, while the increase in the rate will indirectly help ease the pressure on the hryvnia. Following the increase in the refinancing rate, bank deposit and interest rates may grow by 0.5%,” Governor of Bank RwS Vladyslav Kravets has said.
The head of the financial department at Ukrgasbank Viktor Pasternak also predicts that the NBU will raise the key rate in September.
“The National Bank of Ukraine’s increase in the refinancing rate may be within one percentage point. Now the hryvnia is seeing its seasonal weakening, which in turn affects inflation, and an increase in the NBU’s refinancing rate helps curb the inflation,” he said.
According to Pasternak, raising the key rate raises the cost of the hryvnia, but it will not directly influence the exchange rate of the hryvnia.
Head of the investor relations department at Credit Dnepr Bank Andriy Prikhodko also forecasts growth of the refinancing rate.
“The deterioration of financing conditions for Ukraine against the background of the acceleration of the devaluation in August creates prerequisites for raising the refinancing rate, so a small increase in the refinancing rate is possible. A tough monetary policy will increase the profitability and attractiveness of hryvnia instruments, which should reduce pressure on the rate (hryvnia) and inflation. The increased key rate will directly affect the yield of government domestic loan bonds and deposit certificates, the impact on rates on bank deposits and loans will be more indirect and with a certain time lag,” he said.
Governor of Piraeus Bank Serhiy Naumov also forecasts the refinancing rate may increase slightly in September.
“Despite the fact that inflation slowed this summer, inflation expectations are still high, we are entering the autumn period when the exchange rate is growing seasonally and the likelihood of gas price hikes for households is high, so I believe that the NBU can once again consider an increase in the rate. But I don’t think it will be drastic. If the key rate grows, I think rates on both bank deposits and loans will go up, but not immediately and not crucially,” the banker said.
Foreign Minister of Norway Ine Marie Eriksen Søreide will pay a working visit to Ukraine on September 4-6. The press service of the Foreign Ministry of Ukraine said within the framework of the visit the Norwegian minister will hold talks with the foreign minister of Ukraine.
“Important attention will be paid to the development of a political dialogue, strengthening the positive dynamics of trade and economic relations, attracting Norwegian investments, as well as effective implementation of the Norwegian government’s assistance projects in the implementation of reforms in Ukraine,” the press service said.
The agency added the ministers will pay attention to deepening cooperation to counter threats in Europe, including the ways to resolve the conflict in Donbas.
One troy ounce=31.10 grams
Ukrainian President Petro Poroshenko has appointed Serhiy Shutenko Ambassador of Ukraine to Greece.
“To appoint Serhiy Oleksandrovych Shutenko extraordinary and plenipotentiary ambassador of Ukraine to Greece,” presidential decree No. 267/2018 of September 3 states.
Shutenko, born in 1968, worked in the Mission of Ukraine to NATO, as the Consul General of Ukraine in Thessaloniki (Greece), the deputy director of the personnel department of the Foreign Ministry of Ukraine.
The Kyivstar mobile communications operator increased the number of М2М Sim cards (machine-to-machine) by 23% in July 2018 compared with July 2017, to 1.4 million.
The operator reported on its website that among leaders that used М2М Sim cards are security, finance, retail, energy spheres and agriculture, and one of the growth factors is development of the Internet of Things (IoT).
According to the operator, corporate clients have 92% of M2M cards: initially the technology was developed to automate business processes.
In a year, the number of М2М Sim cards among individuals grew by 78%.
“Our customers more often use smart devices with M2M SIM cards installed in them. Kyivstar has joined the projects with a large network player who not only works with a variety of different sensors, but can also ensure their reliable operation by creating an ecosystem for associations of M2M-cards and sensors,” Kyivstar director for business development in the corporate market Yevhen Krazhan said.
The company said that the largest share of M2M SIM cards Kyivstar (37%) is used for security systems of houses, offices, cars and other property.
M2M cards are used to automatically transfer data from a device to another device.
