The National Bank of Ukraine is raising its key policy rate by half a percentage point to 13.5% per annum effective December 13, 2024. This was announced by NBU Governor Andriy Pyshnyi during a briefing.
“This decision is aimed at maintaining the stability of the foreign exchange market, keeping inflation expectations under control, and gradually slowing inflation to the 5% target,” he said.
The increase in the key policy rate is accompanied by an increase in other key indicators for the banking system: the rate on refinancing loans will increase to 16.5%, and the rate on overnight deposit certificates will increase to 13.5%.
This step is due to the acceleration of inflationary processes: in November, the inflation rate reached 11.2% compared to the same period last year. The NBU predicts that inflation may rise further in the coming months. At the same time, it is expected to slow down in the medium term due to an improvement in the energy sector, higher harvests, monetary policy measures, and an easing of external price pressure.
If significant inflationary pressures persist, the NBU reserves the option of raising the key policy rate further.