KIEV, Feb. 20 - Ukrainian authorities might opt to strengthen the hryvnia in order to slow inflation, analysts said.
"We expect that the government will tighten monetary policy, as inflation continues to increase. Besides the usual monetary methods, the government might also resort to less traditional measures to reduce the level of inflation. One such measure could be a sudden and sharp revaluation of the hryvnia," Alfa Bank (Kiev) said in a report obtained by Interfax.
There is also a growing probability that the National Bank of Ukraine (NBU) will raise its discount rate, the bank said. The hryvnia exchange rate could be increased up to UAH4.95 /$1, while the discount rate could be raised to 11.5-12.5% from 10%.
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