The National Bank of Ukraine has cut its discount rate to 13%, the NBU said on Thursday, UNN reports.
The Board of the National Bank of Ukraine has decided to cut the key policy rate from 13.5% to 13% effective June 14, 2024
The regulator said that given the stable inflation rates, gradual improvement in inflation expectations, and assessment of risks to future inflation dynamics, the NBU will continue to cut interest rates. The NBU is doing this to help facilitate the recovery of economic activity.
"The NBU expects inflation to accelerate moderately in the coming months and to go beyond the target range by the end of the year. Such price dynamics will be determined primarily by the continued pressure on business costs in the context of the war, probably slightly lower harvests after last year's records, the transfer to prices of relatively high wage growth, and higher electricity tariffs," the regulator said.
Earlier, Bloomberg wrote that the National Bank of Ukraine is ready to cut its key policy rate for the third time in a row , taking into account the consequences of Russian attacks on the energy sector and their impact on economic growth.