The National Bank of Ukraine keeps the discount rate unchanged at 15.5%.

The Board of the NBU has decided to hold the discount rate steady at 15.5% to sustain the foreign exchange market’s stability, control inflation expectations, and gradually reduce inflation to the 5% target.

However, the National Bank has adjusted its expectations for the consumer price index in 2025, raising it from 8.4% to 8.7%. Nevertheless, according to the NBU’s forecast, annual price growth is anticipated to decline for most goods and services by summer. The expected increase in harvest yields will aid in reducing food inflation starting in the third quarter of 2025, stabilizing it at a relatively low level going forward.

Additionally, fundamental inflationary pressures will gradually ease due to the NBU’s monetary policy measures, improvements in electricity supply, and more moderate labor market pressures. Furthermore, the decline in oil prices resulting from global trade conflicts will also be a contributing factor.

“As a result, inflation is projected to decrease to 8.7% by the end of 2025, and to the target of 5% in 2026,” the regulator predicts.