NBU refrains from lowering the key policy rate due to inflation - maintains 15%

The National Bank of Ukraine has kept its key policy rate at 15%, postponing further easing of its interest rate policy, the NBU announced on Thursday, March 19, UNN reports.

The Board of the National Bank of Ukraine decided to keep the key policy rate at 15%. The NBU is postponing further easing of its interest rate policy due to the risks of increased inflationary pressure and worsening inflation expectations.

This decision, the NBU noted, "will support the attractiveness of hryvnia instruments, the stability of the foreign exchange market, and the controllability of expectations in order to maintain moderate inflation this year and bring it to the 5% target within the policy horizon."

"If risks to price dynamics persist, the NBU will refrain from further easing of its interest rate policy, and if they intensify, it will be ready to raise the key policy rate and take additional measures," the National Bank stated.

The NBU also drew the following conclusions:

• at the beginning of the year, inflation remained close to the NBU's forecast, but the population's inflation expectations worsened;
• the further trajectory of inflation may be higher than forecast, particularly due to rising energy prices amid the war in the Middle East;
• external assistance allows for financing the budget deficit and maintaining international reserves at a high level, which is important for ensuring the stability of the foreign exchange market;
• the consequences of Russian aggression remain the main challenge for inflationary dynamics and economic development, but geopolitical risks have also significantly intensified over the past month.

NBU lowers key policy rate to 15% for the first time since last spring29.01.26, 14:04 • 38121 view