The National Bank of Ukraine (NBU) has decided to raise the discount rate from 14.5% to 15.5% per annum, starting on March 7, 2025. This is the third consecutive increase in the rate that is aimed at maintaining the attractiveness of savings in the hryvnia, maintaining the stability of the currency market and controlling inflationary expectations, which will ensure further slowdown of inflation to the target level of 5%.
The NBU Chairman, Andriy Pyshny, noted that if the risks for inflationary dynamics grow, the National Bank will be ready to take additional measures. Also, since April 4, 2025, the NBU is amending the parameters of interest policy, in particular, will increase the spread between the discount rate and the rate on three -month deposit certificates and loans by 1 percentage. This will help to strengthen the incentives to attract urgent deposits in the hryvnia, which will promote the increase in interest rates on term hryvnia instruments.
Inflation in Ukraine remains high: according to the NBU, it will reach 15% in the coming months, but will start to decline to 8.4% at the end of the year. Increasing the discount rate is an important tool in combating inflation because it affects the overall level of interest rates in the economy, including rates on loans and deposits for enterprises and individuals.
