Ukraine's central bank raises interest rate to 13.5 percent to tackle rising inflation
Date
12/14/2024 4:50:02 AM
(MENAFN) The National bank of Ukraine raised its key policy rate by 50 basis points to 13.5 percent during its December meeting on Thursday. This marks the first rate hike since June 2022, following three consecutive meetings where the rate remained at 13 percent.
The central bank's decision aims to stabilize Ukraine’s foreign exchange market, anchor inflation expectations, and reduce inflation to its 5 percent target. The move comes as inflation has been accelerating faster than anticipated in recent months.
In November, Ukraine's annual inflation rate surged to 11.2 percent, the highest level since July 2023.
In June 2022, the bank had raised its interest rate to 25 percent from 10 percent to protect household incomes, enhance the appeal of hryvnia assets, alleviate pressure on the foreign exchange market, and curb inflation amid the ongoing war.
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