NBU Removes Limits On Overnight Rates.

The National Bank of Ukraine (NBU) removed restrictions on the interest rates it charges for overnight loans to commercial banks. Earlier overnight rates on secured loans had to be at least one point higher than the discount rate (currently, at least 9.5%), and unsecured loans had to be at least two points higher (at least 10.5%). Concorde Capital: Right after cutting its discount rate (from 9.5% to 8.5%) on June 13, the NBU reduced the overnight rate on secured loans by 1% to 10% and on unsecured loans by 2% to 11%. The abolishment of restrictions suggests the NBU will continue to lower the rates on overnight loans, bringing them closer to the discount rate level, in order to support liquidity in the banking sector.