NBU lowers discount rate by 1 pp to 15%

The Board of the National Bank of Ukraine (NBU) decided to reduce the discount rate from 16% to 15% from December 15, 2023.

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

This decision is consistent with the slowdown in inflation and improvement in inflationary expectations, which will contribute to maintaining the attractiveness of hryvnia instruments for savings.

The slowdown in inflation was facilitated by both the expansion of the supply of food products from the new harvest and the improvement of expectations against the background of a stronger hryvnia exchange rate.

The latter led to a somewhat faster decline in core inflation than the NBU expected.

According to the NBU's estimates, inflation indicators in December will remain close to current levels.

At the same time, there are risks of accelerating inflation due to logistical difficulties on the western borders and faster exhaustion of the effects of significant harvests, primarily vegetables.

As Ukrainian News Agency earlier reported, in October 2016, the NBU reduced the discount rate from 15% to 14%, in December 2016 and January 2017 - it was kept at the level of 14%, in April 2017 - it was reduced to 13%, in May 2017 - it was reduced to 12.5%, in October 2017 - increased to 13.5%, in December 2017 - to 14.5%, in January 2018 - 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 - to 16.5%, in October - to 15.5%, in December - 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 - 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 discount rate from 25% to 22%, in September - to 20%, in October - to 16%.

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