Ukraine Delivers First Rate Hike in Two Years
2024-12-12
Category: economic

The National Bank of Ukraine lifted its key policy rate by 50bps to 13.5% in its December 2024 meeting, its first rate hike since the 15 percentage point hike due to the start of the Russian invasion, and raising borrowing costs after keeping the rate unchanged at 13% for three consecutive meetings.
The central bank noted that the rate hike intends to preserve the sustainability of its foreign exchange market controls, keep inflation expectations grounded, and aid disinflation in the Ukrainian economy following evidence of accelerating price growth.