The regulator’s updated macro forecast assumes a further increase in the discount rate to curb inflation in Ukraine.
The National Bank of Ukraine (NBU) raised the discount rate to 14.5% per annum, which corresponds to an increase in inflation to 12% by the end of 2024. This was reported on the regulator’s website on Thursday, January 23.
“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 5%,” the statement said.
The National Bank admitted that the presence of price pressure will require further strengthening of the interest rate policy. The central bank’s updated macro forecast assumes a further increase in the discount rate to curb inflation.
“The NBU is likely to continue to strengthen interest rate policy at the next monetary policy board meetings if signs of continued inflationary pressure and the threat of unbalanced inflation expectations persist,” the regulator reported.
Accordingly, following the discount rate, rates on overnight certificates of deposit were increased to 14.5%, three-month certificates of deposit to 17% and refinancing of loans to 17.5%.
Let’s remember that on October 31, 2024, the NBU kept the discount rate at 13% for the third time in a row and announced its intentions to keep it at this level until the summer of 2025. But on December 12, no he expected to raise the discount rate to 13.5%.
_____________________
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.