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.

It is noted that since the beginning of the year, inflation has decreased faster than expected.

In March, the growth rate of consumer prices slowed to 21.3% year-on-year.

The easing of inflationary pressure was facilitated by a sufficient supply of food and fuel, as well as a fairly rapid restoration of the energy system from the consequences of Russian terrorist attacks.

An important factor was the improvement of inflation expectations since the beginning of the year against the background of the termination of issue financing, the strengthening of the cash rate of the hryvnia and the increase in the attractiveness of hryvnia assets, which were aimed at the measures taken by the NBU.

However, inflationary pressures remain substantial.

The decline in year-on-year inflation is largely driven by last year's high comparison base, as well as exacerbated by winter-warm weather.

Instead, the pressure on business production costs remains, including due to difficulties in conducting activities and setting up logistics chains in war.

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%.

To request a correction, please send an email.