Seeking to contain Europe’s second highest inflation rate, Ukraine’s central bank unexpectedly raised its prime rate by 50 basis points yesterday, to 8%.

A second hike, to 8.5%, is likely this fall, warned the National Bank of Ukraine. The Bank warned: “The NBU’s forecast envisages that the key policy rate will be raised further, to 8.5%, and maintained at that level until Q2 2022, with a view to bringing inflation back to its 5% target in 2022, and keeping inflation expectations in check.”