National Bank of Ukraine holds key rate at 13%

The National Bank of Ukraine (NBU) has decided to maintain its key policy rate at 13 per cent to support inflation control and FX market stability.

Consumer inflation rose to 7.5 per cent annually in August, near the NBU’s July forecast, driven by lower harvests, increased energy and wage costs, and past hryvnia depreciation. Core inflation also rose to 6.5 per cent year-on-year.

Despite these pressures, the NBU aims to reduce inflation to its 5 per cent target over the coming years, supported by a steady FX market and recent international financial aid.

Ukraine’s international reserves exceeded USD 42 billion in early September, bolstered by decreased foreign currency sales and an agreement with the IMF for continued financial support.

However, ongoing Russian aggression poses risks, including additional budget demands, potential tax hikes, infrastructure damage, and adverse migration trends, which could further impact inflation and economic stability.

The NBU will continue to monitor these factors while striving to manage inflation and maintain FX market sustainability.