NBU keeps key policy rate at 25%
NBU is ready to strengthen monetary conditions again (Photo:NBU press center)
The National Bank of Ukraine (NBU), as expected by the market, again kept the key policy rate at the level of 25% per annum, in a statement on Dec. 8.
This will contribute to strengthening Ukraine’s cash flows, maintaining exchange rate stability, and gradually reducing inflation in 2023, the central bank said.
“In view of the expected price movements, persistently high inflation expectations and the upward shift of the balance of risks, the NBU Board decided to keep the key policy rate at 25%, while also tightening reserve requirements for banks in order to strengthen monetary transmission,” the message reads.
It is noted that in the event of pro-inflationary risks, the NBU is ready to strengthen monetary conditions again to preserve the controllability of exchange rate and inflationary processes.
For the first time since the beginning of the full-scale war, on June 2, the NBU raised the key policy rate to 25% per annum. Before that, it was 10%.
The NBU, as expected by the market, kept the key policy rate at the level of 25% per annum again in October.
Follow us on Twitter, Facebook and Google News
