Maintaining of 25% Annual Discount Rate in Ukraine

by Meifan Honcharuk
Thursday, April 27, 2023
Maintaining of 25% Annual Discount Rate in Ukraine

This measure will help strengthen the stability of the foreign exchange market in Ukraine

The National Bank of Ukraine has not changed the discount rate since June 2022. Today, like the entire previous year, it is 25% per annum. From the beginning of 2023, inflation in Ukraine was declining, however, a high discount rate, as one of the tools to curb inflation, will have a positive effect on the growth of hryvnia deposit rates and the foreign exchange market.

The National Bank predicts a slowdown in inflation to 14.8%, and a reduction in the foreign exchange rate, presumably, will start this winter.

It is worth noting that the NBU revised its forecast for economic growth in 2023 from 0.3% to 2%.

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