Ukrainian deputy director says economy is ‘enjoying’ deflation

Ukraine's economy is being supported by a very low rate of inflation, with annual inflation standing at –0.2% in January, according to Oleksandr Arseniuk, a deputy director at the National Bank of Ukraine.

During a presentation on recent money market trends, Arseniuk said: "The low-inflation environment ensures the protection of private economic interests of each Ukrainian citizen and attainment of strategic economic development objectives."

Arseniuk emphasised that the central bank was achieving its mandate. "The National Bank of Ukraine, in close co-operation with the government, has ensured the execution of its main constitutional function – ensuring the monetary unit stability," he said.

The deputy director dismissed concerns over disappointing lending growth, just 0.4% in January, saying business activity usually slows at this time of year. In January 2012, he pointed out, lending growth was negative.