The NBU leaves the key policy rate unchanged due to accelerated inflation.

Ukraine halted a run of three interest-rate cuts after an acceleration in inflation prompted policymakers to signal that easing will only be possible to resume next year, reported Bloomberg. The National Bank of Ukraine kept the key rate unchanged at 13%. Experts expected a reduction in borrowing costs of at least a quarter of a percentage point.

With Russia’s invasion in its third year, policymakers in Kyiv lowered the benchmark by two percentage points in the last three meetings, with most signaling more room for easing last month. But price growth in June accelerated to its highest level since December, while a weakening of the hryvnia amid a surge in budget spending has increased business costs and fueled inflation.

According to the National Bank, the decision to hold borrowing costs was taken to ensure the FX market’s sustainability and bring inflation closer to the 5% target in the forecast horizon.

Officials raised their inflation forecast for the end of this year to 8.5% from 8.2%, with price growth slowing to 6.6% in 2025.