NBU raises policy rate to 14.5

The National Bank of Ukraine announced a one-percentage-point increase in the policy rate, bringing it to 14.5%. According to official data from the regulator, this decision is aimed at stabilising the financial system and reducing inflationary risks.

Why raise the rate?
The main objective of this move is to strengthen the resilience of the country's currency market. The economic situation requires curbing inflation, which, as experts note, has exceeded forecasted levels in recent months. The National Bank plans to gradually bring inflation closer to the target rate of 5%.

Impact on the economy
Raising the policy rate typically makes loans more expensive but helps reduce consumer demand, which in turn eases pressure on prices. Furthermore, such measures may help attract foreign investment due to higher yields on government bonds.