NBU keeps key policy rate at 15.5%

NBU Governor Andriy Pyshnyy announced this at a briefing on Thursday, according to an Ukrinform correspondent.

According to Pyshnyy, keeping the key rate unchanged in October prevented a decline in rates on hryvnia-denominated instruments.

"This supported their attractiveness and helped further increase household investments in fixed-term hryvnia deposits and domestic government bonds. Sustained interest in hryvnia instruments limited demand for foreign currency and was an important factor in maintaining stability in the foreign exchange market," he said.

He stressed that fluctuations in the hryvnia exchange rate were two-way, while exchange-rate expectations remained controlled. At the same time, a relatively tight monetary policy did not hinder credit growth, which has increased by more than 30% over the past year.

"The decision to keep the key policy rate unchanged in December will support these trends and help bring inflation down to the 5% target within the policy horizon," Pyshnyy said.

The National Bank of Ukraine raised its key policy rate to 10% in January 2022 and to 25% in June 2022. It remained at that level for more than a year. On July 27, 2023, the rate was cut to 22%, followed by a gradual easing. In December 2024, in response to accelerating inflation, the regulator again began tightening, raising the rate to 15.5% in March this year, where it remains now.

Photo: NBU