NBU Retains Discount Rate At 25%

The National Bank of Ukraine (NBU) has retained the discount rate at the level of 25%.

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

At the end of 2022, consumer prices increased by 26.6%.

At the same time, over the past three months, the indicator of inflation in the annual dimension has hardly changed.

The stabilization of inflationary pressure was facilitated by the de-occupation of territories, the expansion of food supply and weaker consumer demand in the conditions of Russia's energy terror.

Inflation and unchanged tariffs for housing and communal services, a fixed hryvnia exchange rate and the establishment of logistics were restrained.

The measures of the National Bank, in particular the introduction of deposit instruments for hedging foreign exchange risk, as well as the limited amount of monetization of the budget, contributed to the stabilization of the situation in the cash foreign exchange market at the end of 2022.

At the same time, price pressures remain significant due to the effects of the war, including the destruction of businesses and infrastructure, disruption of production and supply chains.

In addition, business costs continued to increase as a result of Russia's energy terror.

Inflation expectations, despite stabilization, remained elevated.

As Ukrainian News Agency earlier reported, on October 28, 2016, the NBU reduced the discount rate from 15% to 14%, and in December 2016 and January 2017 it kept it at the level of 14%, in April 2017 it reduced it to 13%, in May 2017 it reduced it to 12.5%, in October - increased to 13.5%, in December 2017 - to 14.5%, in January - to 16%, in March 2018 - to 17%, in July 2018 - to 17.5%, in September 2018 - to 18%, in April 2019 - reduced to 17.5%, in July 2019 - to 17%, in September 2019 - to 16.5%, in October 2019 - to 15.5%, in December 2019 - to 13.5%, in January 2020 - to 11%, in March - to 10%, in April - to 8%, in June - to 6%, in March 2021 - increased to 6.5%, in April 2021 - to 7.5%, in July - to 8%, in September - to 8.5%, in December - to 9%, in January 2022 - by 1 p.p. to 10%, in June 2022 - by 15 p.p. to 25%.

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