The National Bank leaves its key policy rate unchanged at 25%.

The NBU notes that inflation at the beginning of 2023 is slowing faster than expected but remains high. In February, it declined to 24.9% year-on-year. At the same time, it is noted that the duration and intensity of hostilities and the subsequent destruction of critical infrastructure remain significant risks for inflationary dynamics. The National Bank also indicated the relevance of the risks: additional budgetary needs, significant quasi-fiscal deficits in the energy sector, complications or termination of the grain corridor, and premature monetary policy easing by leading central banks. The NBU also emphasized that an essential prerequisite for ensuring macro-financial stability is the rhythmic inflow of international funding, including under the expected new program with the IMF.