The National Bank of Ukraine has announced a reduction in the interest rate to 11% per annum since January 31, 2020. The NBU continues to simplify its monetary policy in order to support inflation at the 5% target and maintain stable economic growth.
“The strengthening of the hryvnia was a key factor leading to the rapid decline in inflation observed at the end of 2019 and offset the effects of sustainable consumer demand,” the report said.
The Central Bank expects to reduce its discount rate to 7% by the end of this year thanks to rapid improvement in macroeconomic indicators. Just a year ago, the discount rate was 18%. The reduced rate is a major impetus for the growth of the Ukrainian economy and makes loans more accessible.
