The National Bank's Board has decided to reduce the interest rate in Ukraine by 0.5 percentage points to 14.5% from March 15.
The interest rate in Ukraine is reduced. What is known
According to representatives of the regulator and the Central Bank of Ukraine, by 1.5 basic points, rates on 3-month deposit certificates and refinancing loans were lowered.
Further slowing of inflation, preservation of a stable situation on the foreign exchange market, as well as positive developments in matters of receiving foreign aid provide grounds for earlier resumption of the cycle of softening of the interest rate policy.
Andriy Pyshnyi
NBU Governor
He also noted that, at the beginning of the current year, inflation slowed down faster than the NBU expected.
In particular, it is about 4.3% in February 2024.
According to Andrii Pyshnyi, the reorientation of individual producers to the domestic market also had a certain effect on food prices.
What is important to understand is that core inflation, in turn, also slowed down to 4.5% in annual terms.
The NBU knows how to contribute to the recovery of Ukraine's economy
According to the National Bank's Governor, easing the interest rate policy will support economic recovery without threatening macro-financial stability.
The new level of interest rates for NBU operations is sufficient to maintain the attractiveness of hryvnia assets, exchange rate stability, and preservation of moderate inflation. For these purposes, the NBU plans to maintain operations with three-month deposit certificates (DS) as an effective element of the operational design of the interest policy, which has proven its effectiveness over the past year, Andrii Pyshnyi notes.
In addition, it is reported that the regulator decided to reduce:
The rate for a three-month DS is up to 17.5%;
The interest rate on refinancing loans is up to 19.5%.
The rate for DS overnight will continue to correspond to the accounting rate level (14.5%).
