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The monthly current account (C/A) deficit stood at US$3.2bn on a record foreign trade-in-goods gap of US$5.0bn in September. Import of goods hit a record high at US$8.0bn in September (+34% YoY) on surging imports of machinery and equipment. Meanwhile, export was almost unchanged vs last September.
The central bank maintained the key rate at 15.5%, indicating that monetary easing is unlikely before 2026, as inflation risks remain high. The regulator left the rate unchanged and it now expects two 50bp cuts, previously projected for this year, to be postponed.
This week, the Ministry of Finance will hold a swap auction to exchange reserve bonds, the third one since the beginning of the year. Last week, the MoF borrowed UAH19.6bn via sale of military, regular, reserve, and USD-denominated bonds. Reserve securities accounted for more than a quarter of total funds raised.
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