The largest Ukrainian state bank predicts interest rate decreases on loans and deposits.

As PrivatBank noted, these dynamics will be determined by the reduction of the NBU’s discount rate. A member of the NBU board, Yevhen Zaigraev, noted that the situation with client funds reflects the “temperature” in the economy and the level of business activity.

“We see a gradual decrease in interest rates following the discount rate reduction by the National Bank. Thus, borrowing rates and loan rates will be decreasing, at least for business clients. Though 18-22% loan rates were perceived as adequate half a year ago, today rates are kept at 14-16%. This, of course, does not consider the rates under the 5-7-9 program,” he explained.

Therefore, according to the banker, interest rates for attracting funds will also slowly decrease for deposits, account balances, etc. Zaigraev also clarified that in 2024 the volume of funds from business clients will remain stable.

“During the period of traditional spring revitalization, businesses begin to spend the funds accumulated in the winter actively. That is why we have not yet observed increased funds from business clients”, added the banker.