The regulator admitted that inflationary risks were preserved, and promised to carefully monitor the development of the situation.
The National Bank of Ukraine for fourth time in a row maintains a discount rate at 15.5% each year. It was announced on Thursday, September 11.
“The National Board Board decided to maintain a rate of accounting at 15.5%. It will continue to maintain valid financial conditions for the stability of the foreign exchange market, the control of expectations and inflation at 5%.
The regulator recalled that the July Macroeconomic Forecast provides for the beginning of the discount rate reduction cycle in the IV quarter of 2025.
“Although inflation is fixed to the trajectory reduction, income risks are maintained. The NBU will carefully monitor the development of the situation. In the case of implementing or strengthening NBU-based risks, the NBU is ready to postpone a reduction in accounting rate, and, if necessary, take further steps,” the statement said.
Earlier, the NBU increased the discount rate three times in a row. The last increase of this was in March. Prior to this, the National Bank held it for six months to 13%, where it was reduced from 25% from July 2023 to seven stages.
The discount rate is equal to the cost of money to the economy. At this rate, the NBU provides funding to commercial banks, and they, the individual credits and legal creatures. Therefore, the discount rate affects the cost of credit resources. An increase in discount rates indicates an increase in inflation levels and decline in economic growth rate in the country.
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Source: korrespondent
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