You're reading: National Bank: Ukraine’s business circles worsen inflation expectations

Ukraine's business circles in the fourth quarter of 2011 worsened their inflation expectations, reads a posting on the Web site of the National Bank of Ukraine (NBU), referring to the results of a poll of enterprise heads.

"The expected inflation for next 12 months was 14% on average [the increase by 0.4 percentage notches compared to the level predicted in the previous quarter]," reads the report.

The poll was conducted in late November: representatives of 1,241 enterprises in all regions of the country, which represent the economy in key economic directions, were polled.

"Production growth expectations for Ukraine considerably weakened compared to the previous quarter, and inflation and devaluation expectations strengthened," reads the report.

The NBU said that business says that in next three months there will be a rise in the need to borrow funds.

However, the share of respondents who plan to raise banking credits fell by 0.5 percentage notches in the fourth quarter, to 42.7%: the expected toughening of the crediting conditions and other sources of financing influenced the indicator.