The National Bank predicts a slowdown in inflation next year.

The NBU will allow exchange rate fluctuations that will make it possible to maintain control over inflation expectations and achieve the 5% inflation target, said National Bank Chairman Andriy Pyshnyi. The regulator aims to keep inflation at a moderate level in 2024 and bring it back closer to the 5% target in the following years. Achieving these goals are crucial in protecting the population’s savings against inflation and preserving stability in the foreign exchange market.

“This means that we will tolerate only such exchange rate fluctuations that will allow us to maintain control over inflationary expectations and achieve the inflation target over the forecast horizon,” Pyshnyi said.

According to him, decisions regarding the key rate will consider aspects such as the attractiveness of the hryvnia.

The NBU expects inflation to accelerate only moderately this year to 8.7% but will decrease to 6.6% next year and return to the 5% target in 2026.