Ukraine’s National Bank keeps discount rate at high level

The National Bank of Ukraine has decided to keep the discount rate at 25% per annum from September 9, 2022. The decision was made despite the jump in inflation, Deputy Head of the bank Serhiy Mykolaichuk said at a briefing, Report informs citing RBC-Ukraine.

“This level of the discount rate under current conditions is sufficient to maintain exchange rate stability and controllability of inflationary processes,” he said.

The discount rate is the cost of the National Bank’s loans to commercial banks, which can receive long-term or short-term refinancing from the central bank. Indirectly, the rate should determine the price of loans in the market.