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KIEV Dec 8 Ukraine's central bank is prepared
to resume cutting its main interest rate in 2017 if inflation
risks fall, governor Valeriia Gonetareva said on Thursday.
The bank kept the rate on hold at 14 percent on Thursday
breaking a run of six consecutive cuts due to an uptick in
inflation in October.
The bank said it was "highly likely" inflation would hit its
year-end target of 12 percent, but warned of risks to
macroeconomic stability including from delayed disbursement of
International Monetary Fund loans worth $1.3 billion that were
due this year.
"If risks to stability fall, the central bank will resume
monetary policy easing next year," Gontareva said in a briefing.
"Unfortunately we won't get the (IMF) tranche this year, but
we hope that ... the tranche will get to us in January-
February," she said.
The IMF has said further disbursements depend on parliament
passing the 2017 budget as well as pension and tax reforms.
The loan delays have prevented the bank achieving its
foreign reserve target of $17.5 billion this year, but officials
say the currency market will remain stable thanks to foreign
exchange inflows from exports following a record harvest in
Ukraine, the world's third-largest grain exporter.
"In the coming months we don't expect any significant
slowdown in the rate of export revenue inflow," deputy governor
Oleh Churiy said at the same briefing.
(Reporting by Natalia Zinets; Writing by Alessandra Prentice;
Editing by Janet Lawrence)