NBU keeps key policy rate at 15.5%

The Board of the National Bank of Ukraine (NBU) has decided to keep the key policy rate at 15.5%.

This is announced in the NBU's statement, the Ukrainian News agency reports.

It is noted that the growth rate of consumer prices has been slowing for three consecutive months - to 13.2% y/y in August.

This decrease in overall inflation was somewhat faster than the NBU had forecast.

Core inflation also slowed down - to 11.4% y/y, close to the forecast.

This dynamics was due to several factors.

Thanks to the arrival of new harvests, inflation of raw products slowed down noticeably.

This, in turn, restrained the growth of prices for processed food products.

The dynamics of other components of core inflation - services and non-food goods - were also downward.

This was facilitated by both the previous monetary policy measures of the NBU and the easing of imbalances in the labor market.

The latter is reflected in the reduction of the gap between the level of salaries and the expectations of job seekers, as well as in the growth of labor supply.

Inflation expectations of households and financial analysts improved in August.

However, the expectations of most groups of respondents remained at a double-digit level.

In addition, search query statistics indicated a still increased level of public attention to the topic of inflation.

Inflation is expected to continue to decline.

This will be facilitated primarily by the further reflection of the effects of the arrival of new crops and the NBU's measures to maintain sufficient attractiveness of hryvnia assets and stability of the foreign exchange market.

As the Ukrainian News agency earlier reported, in March 2021 the NBU raised the key policy 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 key policy 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%, in December 2024 it increased to 13.5%, in January 2025 - to 14.5%, in March - to 15.5%.

At the same time, the Board of Directors of the Bank of russia on March 21 decided to maintain the key policy rate at 21.00% per annum.

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