The National Bank of Ukraine (NBU) has announced a decision to sharply increase the discount rate - to 25% at once per annum from 10%, Report informs referring to the regulator’s statement.
“The NBU Board decided to raise the discount rate to 25%. The purpose of such a decisive step, along with other measures, is to protect hryvnia income and savings of citizens, increase the attractiveness of hryvnia assets, reduce pressure on the foreign exchange market and, as a result, strengthen the ability of the NBU to ensure exchange rate stability and contain inflationary processes,” the National Bank said.
The rate was kept at a historical low of 6% per annum from June 2020 to March 2021. Then it gradually increased by 1 percentage point since January 21, 2022, up to 10% per annum.