UPDATE 1-Ukraine central bank welcomes IMF progress after rate pause

Ukraine's central bank kept its key rate unchanged at 18 percent on Thursday and said the good progress achieved in talks for more loans from the International Monetary Fund had improved the inflation outlook.

Ukraine can expect the first loan tranche under a new IMF stand-by programme by Christmas, worth between $1.4-1.9 billion, Yakiv Smoliy told a news conference.

The Kiev authorities secured a new IMF agreement to help maintain economic stability next year, when Ukraine holds presidential and parliamentary elections. The IMF executive board, which must sign off on the loan, meets on Dec 18.

"We expect a tranche in the range of 1.4-1.9 billion dollars. This is a preliminary forecast," Smoliy said.

The bank said in a statement that monetary conditions were sufficiently tight to bring inflation down to its medium-term target of 5 percent by 2020, adding that inflation risks had weakened since its last rate-setting meeting.

Risks to that target include the uncertainty caused by near year's elections, and the impact on exporters of a standoff with Russia over the Kerch Strait and the Azov Sea, the statement said. (Reporting by Natalia Zinets; writing by Matthias Williams; editing by Jon Boyle)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)