The updated forecast for the trajectory of the discount rate of the National Bank provides for its maintenance at the current level for a longer period – at least until the summer of 2025.
The National Bank of Ukraine (NBU) for the third time in a row left the discount rate at 13% per annum. This was reported on the regulator’s website on Thursday, October 31.
“To maintain the stability of the foreign exchange market, bring inflation to the target in the coming years and maintain control over inflation expectations, the NBU board decided to keep the discount rate at 13%,” the statement said.
The NBU states that the peak of inflation has not yet passed, and the pro-inflationary risks will intensify in the coming months, and in this regard, the regulator considers it appropriate to remain cautious on the rate policy of interest and take balanced measures to ensure the stability of the foreign exchange market.
“If inflationary risks continue to materialize, the National Bank will be ready to respond with all available monetary policy measures,” assured the regulator.
The updated forecast for the trajectory of the discount rate of the National Bank provides for its maintenance at the current level of 13% per year for a longer period – at least until the summer of next year. But in the event of a further increase in price pressure beyond the forecast and the threat of unbalanced inflation expectations, the NBU will be ready to strengthen the interest rate policy and apply additional monetary measures.
As you know, in June 2022, the NBU raised the discount rate from 10% to 25%. This level remained until July 2023, when the regulator reduced the rate to 22%. In September last year, the NBU reduced the rate to 20%, in October – to 16%, and in December – to 15%. In January, the discount rate did not change, in March it was reduced to 14.5%, in April – to 13.5%, and in June – to 13%.
Source: korrespondent
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