The National Bank of Ukraine (NBU) has decided, for the fifth consecutive time, to keep its key policy rate at 15.5% per annum. According to the central bank, this decision will help maintain appropriate monetary conditions to ensure currency market stability, anchor inflation expectations, and bring inflation down to the 5% target.
The NBU’s decision comes as the country continues to face economic challenges, including the ongoing impact of the Russia-Ukraine war and the need to maintain stable financial conditions. Despite the pressure to cut rates to stimulate the economy, the bank has opted to keep rates steady to manage inflation.
Analysts have expressed mixed reactions to the decision. While some believe that keeping rates higher will help control inflation, others argue that the delay in rate cuts could slow economic growth and make it harder for businesses and consumers to access credit. The NBU has also pushed back rate-cut expectations to the first quarter of 2026, which has raised concerns among some market participants about the pace of economic recovery.