NBU lowers interest rates on its operations by 1 pp

The National Bank of Ukraine (NBU) lowered interest rates on its operations by 1 pp.

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

Previous steps to soften the interest rate policy led to a moderate decrease in nominal market rates for hryvnia instruments, which met the NBU's expectations.

Thus, the weighted average interest rate on time deposits for households with a term of three months or more decreased to 14.7% in November.

The yield of government domestic loan bonds on the secondary market decreased to 16-19.7%, depending on the maturity.

At the same time, taking into account the decrease in inflation and the improvement of expectations, rates on hryvnia instruments in real terms even increased somewhat.

As a result, hryvnia instruments will continue to be an attractive means of savings.

Considering that the reduction of the discount rate will not create risks for the attractiveness of savings in hryvnia against the background of a further decrease in inflation and improvement of inflation expectations, as well as the successful adaptation of the foreign exchange market to the new exchange rate regime, the NBU continues the cycle of softening of the interest rate policy.

From December 15, 2023, the discount rate, and together with it, the rate for the main operation of the NBU for the placement of overnight deposit certificates, will be set at the level of 15%.

For 1 pp other rates are also reduced: the rate on three-month deposit certificates - to 19%, and the rate on refinancing loans - to 21%.

As Ukrainian News Agency earlier reported, in October of this year, the NBU reduced the discount rate from 20% to 16%, but kept the rates for transactions with banks.

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