NBU reduces discount rate from 22% to 20%

The Board of the National Bank of Ukraine (NBU) decided to reduce the discount rate from 22% to 20%.

This is stated in the message of the NBU, Ukrainian News Agency reports.

Annual inflation slowed to 8.6% in August.

The price dynamics turned out to be better than the NBU expected, primarily due to the increase in the supply of food products.

So, good harvests contributed to the reduction of prices for cereals, flour, vegetables and some fruits.

At the same time, the decline in core inflation (to 10% y/y in August) was close to the NBU's July forecast.

The NBU's measures to ensure the attractiveness of hryvnia assets and the stability of the foreign exchange market played an important role in easing the fundamental price pressure.

They, in particular, contributed to the further improvement of exchange rate and inflation expectations.

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%.

In July 2023, the NBU reduced the discount rate from 25% to 22%.

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