The Board of the National Bank of Ukraine (NBU) decided on Thursday to maintain the discount rate at 13% and plans to keep it at this level until the summer of 2025, whereas previously the central bank had intended to ease it starting from the first quarter of 2025.
"To support the stability of the currency market, align inflation with targets over the coming years, and maintain control over inflation expectations, the NBU Board has decided to keep the discount rate at 13%," the regulator stated in its press release on Thursday.
The NBU emphasizes that the peak of inflation has not yet been reached, and inflationary risks have even intensified in the coming months. In this regard, the regulator considers it prudent to remain cautious in its monetary policy and to take measured actions to ensure the stability of the currency market.
"In the event of further realization of inflationary risks, the National Bank will be prepared to respond with all available monetary policy measures," the release noted.
The updated forecast trajectory for the NBU's discount rate suggests maintaining the current level of 13% per annum until the summer of next year. At the same time, it is indicated that in the case of further price pressure exceeding forecasts and the threat of destabilizing inflation expectations, the NBU will be ready to tighten its monetary policy and implement additional monetary measures.