The National Bank raises the key rate to 15.5% to reduce pressure on prices and stabilize the market.
In Ukraine, the inflation rate in January reached 12.9% year-on-year, and in February this figure continued to grow under the influence of short-term factors.
The National Bank of Ukraine reported this.
As it became known, the main factors of inflation growth in Ukraine are deterioration of harvests and increase in expenses of enterprises. From March 7, 2025, the discount rate will rise to 15.5%, which should stabilize prices. The war and destruction of energy infrastructure continue to affect the cost of goods.
In addition, inflationary pressure in Ukraine is increasing due to the war, rising production costs and the destruction of the energy system. At the same time, the NBU expects inflation to slow in the second half of the year.
“Thanks to the NBU's measures and the gradual exhaustion of the influence of temporary inflation factors, it should return to the slowdown trajectory in the second half of the year and decrease to a single-digit level by the end of the year,” the statement said.
Let us recall that earlier we wrote that the National Bank explained how they want to curb inflation.