Seeking to suppress Ukraine’s 13% annual inflation

Seeking to suppress Ukraine’s 13% annual inflation, the central bank held its key policy rate at 17%, the highest level in Europe, according to a National Bank of Ukraine statement Thursday. Starting in October, the bank lifted interest rates by 4.5 percentage points. The hikes strengthened the hryvnia by 7.6% against the dollar, making it the world’s best performer, Bloomberg reports. Yakiv Smoliy, the bank governor, predicted Thursday that annual inflation would drop to 8.9% at the end of this year. Timothy Ash writes: “Smoliy and his team are doing a fantastic job…Clear communication and credible and orthodox policy. I am confident the NBU will turn the trend on inflation.”