The National Bank of Ukraine has raised the key policy rate to 14.5% per annum.

The NBU increased rates on overnight certificates of deposit, three-month certificates of deposit, and refinancing loans by 1 percentage point – to 14.5%, 17%, and 17.5%, respectively. This decision aims to maintain the foreign exchange market’s stability, keeping inflation expectations under control and gradually slowing inflation to the 5% target. The regulator noted that in December 2024, inflation accelerated to 12% per annum and continued rising in January.

“The transition of inflation to a double-digit level negatively affects the inflation expectations of consumers and businesses. This also leads to a decrease in the real profitability of hryvnia savings instruments. Therefore, the NBU considers it appropriate to continue tightening interest rate policy,” the central bank said.

It is expected that the discount rate increase will help ensure adequate protection for hryvnia savings from inflation and support consumer’s interest in hryvnia assets. It will also reduce pressure on the foreign exchange market and prices. It is predicted that containing price pressure will require further tightening of interest rate policy.