The National Bank of Ukraine has decided to raise its key policy rate by 1 percentage point to 14.5%.
This was reported by the regulator’s press service.
“This decision is aimed at maintaining the stability of the foreign exchange market, keeping inflation expectations under control, reversing the inflation trend and gradually slowing inflation to the 5% target,” the statement said.
Along with the discount rate, the rates on overnight certificates of deposit, three-month certificates of deposit, and refinancing loans are being raised by 1 percentage point to 14.5%, 17.0%, and 17.5%, respectively.
The NBU also added that curbing price pressures will likely require further tightening of interest rate policy.
The NBU has kept the key policy rate at 10% since the beginning of the war and decided to raise it to 25% in June 2022.
The 25% rate remained in place until July 2023, when the NBU began to cut the rate. The rate dropped to 15%. The NBU continued to cut the rate in 2024. Since June, it has kept it unchanged at 13%.
But in December 2024, the NBU raised the rate to 13.5%.