The National Bank of Ukraine decided to raise the key discount rate by one percentage point, setting it at 14.5%. This step was a response to the strengthening of inflationary processes in the economy and is aimed at stabilizing the financial market, informs press office of the regulator.
“In order to maintain the stability of the foreign exchange market, maintain controllable expectations and gradually bring inflation to the goal of 5% on the policy horizon, the Board of the NBU decided to raise the discount rate by 1 percentage point to 14.5%.” – the message says.
In addition, rates on other monetary policy instruments were increased, in particular, on certificates of deposit and refinancing loans. This shows that the National Bank is ready to take all necessary measures to ensure price stability.
“This decision is aimed at maintaining the stability of the currency market, keeping inflationary expectations under control, reversing the inflationary trend and gradually slowing down inflation to the 5% target. Containment of price pressures will likely require further tightening of interest rate policy.” – noted the head of the National Bank of Ukraine, Andriy Pishnyi.
