2024-01-25T18:26:00+02:00 Economy 2024-09-15T04:46:38+03:00

Ukrainian news

NBU retains discount rate at 15% and may return to its reduction from H2

NBU retains discount rate at 15% and may return to its reduction from H2

The Board of the National Bank of Ukraine (NBU) decided to retain the discount rate at the level of 15%.

This is stated in the message of the NBU, Ukrainian News Agency reports.

This decision is consistent with the need to further maintain exchange rate stability, maintain moderate inflation in 2024 and bring it to the target range of 5% ± 1 pp on the horizon of monetary policy.

Despite the continuation of russian aggression, last year the inflationary pressure decreased significantly.

In November, inflation slowed to 5.1% in annual terms and remained at this level in December.

The weakening of price pressure was largely facilitated by high harvests and a decrease in global energy prices.

An important role was played by the moratorium on raising tariffs for certain housing and utility services.

The basic scenario of the NBU forecast, which assumes the receipt of a sufficient amount of international financing and the reduction of security risks from next year, foresees a slight decrease in the discount rate from the second half of 2024.

At the same time, the NBU will adapt monetary policy in the event of a change in the balance of risks for inflation and exchange rate stability.

Further decisions regarding the discount rate will depend on the dynamics of inflation, the state of the foreign exchange market, the rhythm of the receipt of international aid, the evolution of security risks and other factors.

As Ukrainian News Agency earlier reported, in October 2016, the NBU reduced the discount rate from 15% to 14%, in December 2016 and January 2017 - it was kept at the level of 14%, in April 2017 - it was reduced to 13%, in May 2017 - it was reduced to 12.5%, in October 2017 - increased to 13.5%, in December 2017 - to 14.5%, in January 2018 - to 16%, in March 2018 - to 17%, in July 2018 - to 17.5%, in September 2018 - to 18%, in April 2019 - reduced to 17.5%, in July 2019 - to 17%, in September - to 16.5%, in October - to 15.5%, in December - to 13.5%, in January 2020 - to 11%, in March - to 10%, in April - to 8%, in June - to 6%, in March 2021 – increased to 6.5%, in April - to 7%, in July - to 8%, in September - to 8.5%, in December - to 9%, in January 2022 - to 10%, in June 2022 - to 25%.

In July 2023, the NBU reduced the discount rate from 25% to 22%, in September - to 20%, in October - to 16%, in December - to 15%.