The National Bank of Ukraine has decided to raise the key interest rate from 13.5% to 14.5% per annum. The new rate will take effect from January 24 of this year.
This was reported by the NBU press service on January 23.
The EBRD has downgraded its economic growth forecast for Ukraine for 2025 due to attacks on the energy sectorThe EBRD has revised its GDP forecast for Ukraine next year down by 1.3 percentage points.According to the National Bank, the decision to raise the key interest rate is aimed at maintaining the stability of the currency market, keeping inflation expectations under control, reversing the inflation trend, and gradually slowing inflation to 5%.
The regulator reminded that in December 2024, inflation accelerated to 12% year-on-year, which exceeded the NBU's October forecast, primarily due to temporary factors (including the deterioration of last year's harvests).
According to NBU estimates, inflation acceleration continued into January. Fundamental price pressures also intensified.
“The transition of inflation to double-digit levels negatively affects the inflation expectations of the population and businesses. This also leads to a decrease in the real yield of hryvnia savings instruments,” the statement said.
The NBU is confident that raising the key interest rate will help adequately protect hryvnia savings from inflation, support public interest in hryvnia assets, and lead to reduced pressure on the currency market and prices.
Recall that last year in April and June, the NBU lowered the key interest rate, while in December it decided to raise it to 13.5%.
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