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In March, Ukraine’s current deficit narrowed to US$0.9bn as the inflow of foreign budgetary grants resumed.
Last week, the MoF announced the results of its debut attempt to agree the terms of VRI restructuring. The initial offer was rejected by investors.
The regulator has paused its tightening cycle and now forecasts a rate cut in September. Despite accelerating inflation, which reached 14.6% YoY in March and some expectations of another hike, the NBU stuck to its earlier plan and refrained from further increases. This marks the end of three consecutive hikes totaling 250bp.
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