The National Bank of Ukraine has kept its key rate at 15.5% for the third consecutive meeting,

as announced on its website. The central bank explained that there’s no room to lower interest rates after bad weather caused damage to  crops, while increased Russian air attacks continue to hurt businesses and fuel inflation. Policymakers expect the key rate to stay the same until the fourth quarter of this year. The decision “is an important prerequisite for a sustainable slowdown of inflation toward its 5% target”, the NBU said on July 24.

The central bank also noted that there’s no need for additional rate hikes as inflation growth is under control. At the same time, there’s no room to cut, given the slower-than-expected drop in inflation and risks to price stability.

Ukraine’s new prime minister, Yuliia Svyrydenko, expressed hope for possible monetary easing in comments to Bloomberg early this week, her first interview since taking office. She said the central bank might consider cutting rates if inflation moves closer to the forecasted 9.5% by the end of the year, which could help direct much-needed bank lending into the wartime economy.