Politics also may have influenced the interest rate hike.

In one year on the job, Kyrylo Shevchenko, the Governor of the National Bank of Ukraine, has presided over the departure of one third of top officials at the bank. On Tuesday, the Financial Times reported: “Two people close to Zelenskiy told the FT that Shevchenko was himself at risk of being replaced.” By overseeing interest rate hikes, Shevchenko may present himself as an orthodox central banker, thus winning support of the IMF at a critical time for Ukraine.