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NBU cuts key policy rate to 14.5 per cent

The NBU governor attributed this to a further slowdown in inflation, a stable situation in the foreign exchange market, and positive developments in obtaining foreign aid. The last time the NBU cut the key policy rate was in December last year, when it was cut to 15%.

NBU cuts key policy rate to 14.5 per cent
Andriy Pyshnyy
Photo: Max Trebukhov

At a briefing, National Bank of Ukraine Governor Andriy Pyshnyy said that the NBU has decided to cut the discount rate (refinancing rate) to 14.5%, Ukrinform reports.

"The Board of the National Bank of Ukraine has decided to cut the discount rate to 14.5% starting from 15 March 2024," Pyshnyy said.

The reasons for this decision were, according to him, a further slowdown in inflation, a stable situation in the foreign exchange market, as well as positive developments in obtaining foreign aid.

In particular, according to the NBU, inflation slowed to 4.3% year-on-year in February. This was driven, among other things, by a greater supply of certain food products and the effects of last year's bumper harvest. Core inflation also decelerated to 4.5% year-on-year.

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