NBU keeps the key policy rate at 13%: a forecast for how long
Kyiv • UNN
The National Bank of Ukraine has kept its key policy rate at 13%. The regulator plans to keep the rate at least until the summer of 2025 to control inflation and bring it back to the 5% target.
The National Bank of Ukraine has kept the key policy rate at 13%, and the updated forecast suggests that it will remain at this level for a longer period of time - at least until the summer of 2025, the NBU said on Thursday, UNN reports.
The Board of the National Bank of Ukraine has decided to keep the key policy rate at 13%
The regulator is convinced that "this decision, combined with maintaining the stability of the foreign exchange market, will help maintain control over inflation expectations, slow inflation next year and further return it to the 5% target.
"Given that the peak of inflation has not yet passed, and the pro-inflationary risks for the coming months have even increased, the NBU considers it appropriate to remain cautious in its interest rate policy, as well as to take prudent measures to ensure the stability of the foreign exchange market. In order to counteract price pressure, the NBU has suspended interest rate policy easing since July," the NBU said.
It is emphasized that in case of further realization of inflationary risks, the NBU will be ready to respond with all available monetary policy measures.
The NBU's updated forecast envisages keeping the key policy rate at 13% for a longer period of time, at least until the summer of 2025. In the event that price pressures continue to rise above the forecast and threaten to unbalance inflation expectations, the NBU will be ready to tighten its interest rate policy and take additional monetary measures
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