NBU retains discount rate at 13%

The Board of the National Bank has decided to retain the discount rate at the level of 13%.

The NBU has said this in a statement, the Ukrainian News agency reports.

After a long period of decline, inflation resumed growth in May, and accelerated to 4.8% year-on-year in June.

This inflation trajectory was only slightly lower than the forecast of the NBU, published in the Inflation Report for April 2024.

Lower-than-expected growth in food prices offset a more substantial increase in household electricity tariffs.

At the same time, core inflation (5% y/y in June) corresponded to the NBU's forecast.

Fundamental price pressures intensified due to increased business costs for labor and electricity.

In addition, the dynamics of individual components of the basic consumer price index were affected by the weakening of the hryvnia exchange rate.

As the Ukrainian News agency earlier reported, in March 2021 the NBU raised the discount rate to 6.5%, in April – to 7%, in July – to 8%, in September – to 8.5%, in December – to 9%, in January 2022 - to 10%, in June 2022 - to 25%.

In July 2023, the NBU reduced the discount rate from 25% to 22%, in September - to 20%, in October - to 16%, in December - to 15%, in March 2024 - to 14.5%, in April - to 13 .5%, in June - to 13%.