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Ukraine likely to cut rates to 10.25 pct - cbank source

Published 08/11/2009, 03:39 AM
Updated 08/11/2009, 03:42 AM

KIEV, Aug 11 (Reuters) - Ukraine's central bank is likely to cut its key interest rate to 10.25 percent from 11 percent on Wednesday, a central bank official source told Reuters on Tuesday.

"As far as I know such a decision on reducing the rate was taken but it has not yet been formalised," the source said.

The central bank was not immediately available for comment. It last cut rates in June by 1 point, citing a stable situation on the money market and the need to stimulate the economy, which is expected to shrink by 13-14 percent this year. Latest data showed inflation in Ukraine has slowed in July to 15.5 percent from 26.8 percent in the same month a year ago. Month-on-month prices fell 0.1 percent against a rise of 1.1 percent in June. (Reporting by Yuri Kulikov, editing by Mike Peacock)

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