Ukraine's Central Bank Holds Key Interest Rate at 25%

Ukraine's central bank said on Thursday it would keep its main interest rate steady at 25% as inflation remained high so far this year, Reuters reported. The bank has kept the interest rate at 25% since June 2022 as it sought to keep inflation under control following Russia's large-scale invasion, which has disrupted supply chains and battered the economy. "The National Bank's board decided to keep the key policy rate at 25% and to introduce a number of additional measures to spur banks' competition for retail term deposits," Andriy Pyshnyi, the central bank's governor, told an online briefing. "Such steps will help increase the attractiveness of hryvnia savings, support the stability of the forex market and create preconditions for restrictions to be eased." Inflation remained high in the first two months of the year, with consumer prices growing by 24.9% percent in February year-on-year, government data showed. The central bank said the relatively warm winter had helped increase the supply of food products and stabilise the fuel market, contributing to slower inflation. But it said risks remained high, including from the war and the possibility of Russian attacks causing more damage to critical infrastructure. Read more.