Following a slowdown in inflation, the NBU lowered the key rate for the fourth time in a row.

The National Bank of Ukraine decided to reduce the discount rate from 16% to 15% per annum starting December 15, 2023. The NBU continued its pattern of lowering the discount rate, which began in July, said the head of the NBU, Andriy Pyshnyi.

“This decision is consistent with the slowdown in inflation and the improvement of inflationary expectations, which will contribute to maintaining the attractiveness of hryvnia instruments for savings,” he explained. Consumer price growth in Ukraine slowed to 5.1% in November. This is the lowest figure since December 2020.

The National Bank of Ukraine predicts that consumer prices will rise by approximately 5% by the end of 2023. At the same time, there are risks of accelerated inflation stemming from logistical difficulties on the western borders and faster exhaustion of the significant harvests’ impact, primarily vegetables.

Also, a high level of uncertainty regarding the duration and intensity of the war still remains.