NBU сuts key policy rate

The National Bank of Ukraine cuts key policy rate to 14.5%.

The Board of the National Bank of Ukraine has decided to cut the key policy rate from 15% to 14.5% effective 15 March 2024, as reported by the National Bank of Ukraine.

It is reported that a further decline in inflation, sustained stable FX market conditions, and positive developments in the prospects of receiving external assistance lay the groundwork for an earlier resumption of the easing cycle of interest rate policy.

As the National Bank stated, the NBU continues to be prepared to adapt its interest rate policy dynamically in response to changes in the balance of risks to inflation and exchange rate sustainability. Maintaining a controlled situation in the FX market and moderate inflation, as well as increased foreign aid inflows, will create preconditions for further steps to cut the key policy rate and ease FX restrictions, which will promote lending and support economic recovery.