The upward trend in bank deposit rates declined due to the NBU’s reduced key policy rate.

Ukrainian banks began to retreat from record high deposit rates on consumer deposits after the NBU beganits discount rate reduction cycle in July, when it was reduced from 25% to 22%, according to industry sources.

As a representative from one Ukrainian bank noted, interest rates fell in June-July from their previous peak. Since the end of July, when the NBU discount rate was reduced, most financial institutions began to revise their interest policy. And now an interest rate of more than 20% per annum cannot be found in Ukraine’s market. Now rates are lower, and all banks are adjusting them gradually.

Peak rates are shifted to shorter-term deposits, such as three-month terms. At the same time, bankers predict a further decrease in rates against the background of a further decrease in the NBU’s discount rate.