Ukraine Interest Rate

The National Bank of Ukraine raised its key policy rate by 100 basis points to 15.5% after its March 2025 meeting, a third consecutive rate hike, to lift benchmark borrowing costs to their highest since late 2023. The central bank noted inflation accelerated in manners close to its expectations at the turn of the year and crossed the 13% mark in February, warranting higher borrowing costs to control inflation expectations. The authority also noted that higher rates will aid its effort in maintaining the attractiveness of hryvnia savings and stability in the foreign exchange market. Additionally, the NBU noted that it will continue to raise interest rates in the case that inflation expectations do not stop rising, while noting that the likelihood of a transition to rate cuts are likely to be delayed from what was signaled in the latest forecasts.