In the future, the continuation of the discount rate reduction cycle is expected, the implementation of which will be consistent with the need to maintain the attractiveness of hryvnia assets as a prerequisite for the stability of the currency market and a steady decrease in inflation.
This is stated in the message of the NBU, Ukrainian News Agency reports.
At the same time, given the significant uncertainty and high risks associated with the war, the NBU will act cautiously to ensure macro-financial stability in the future.
In case of deterioration of expectations, a noticeable decrease in the attractiveness of hryvnia instruments and increased risks for exchange rate stability, the NBU will accordingly adjust its decisions and forecast of the discount rate.
The NBU's transition to a cycle of interest policy easing in July expectedly led to a decrease in nominal interest rates in the banking system.
However, given the rapid slowdown in inflation and improved expectations, the yield on hryvnia assets remained attractive.
Interest rates on hryvnia term deposits and government domestic loan bonds, even after a certain decrease in August, exceed both the current and expected inflation levels by households.
As a result, the population's demand for bank deposits with a term of 3-12 months and government domestic loan bonds continued to grow.
Situational fluctuations in the cash currency market did not change these trends.
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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