Due to inflation, the key rate in Ukraine was increased from 13% to 13.5%.

The Board of the National Bank of Ukraine increased the discount rate to 13.5% per annum. This takes place after inflation accelerated to 11.2% per annum in November. It is noted that the inflationary surge is increasingly acquiring fundamental characteristics, which is confirmed by the further acceleration of core inflation (to 9.3% in November).

Inflation expectations currently demonstrate relative stability, but the risk of their imbalance increases against the background of increased public attention to inflationary processes. Inflation is expected to slow in 2025 and continue to move toward the 5% target. The volume of international financial assistance in 2025 will be sufficient for emission-free financing of the budget deficit and to maintain a stable foreign exchange market. The key risk for inflation dynamics and economic development remains the course of the war.

The NBU will continue to tighten interest rate policy at the upcoming meetings of the Monetary Board if signs of persistent inflationary pressure and the threat of imbalance in inflation expectations persist.