National Bank of Ukraine Lowers Key Rate to 15%
Date: 2023-12-14 Author: Dima Zakharov Categories: ECONOMY
Understanding the National Bank's Decision
The National Bank of Ukraine has taken a significant step by reducing its key interest rate to 15%. This decision, effective from December 15, 2023, follows a series of adjustments in response to various economic factors.
Fluctuating Rates Over Time
Back in January 2022, the National Bank had initially raised the interest rate to 10%. However, amidst the onset of military aggression, this rate remained constant. By June 3, 2022, the interest rate surged from 10% to 25%. Sustaining this level for over a year, it was only on July 27, 2023, that the rate was lowered to 22%. Subsequently, on September 15, it further decreased to 20%.
Recent Changes in Rates
From October 27, 2023, the National Bank of Ukraine made a pivotal decision to set the interest rate at 16%, aligning it with the overnight deposit certificate rate.
The Current Decision
The recent reduction to 15% marks a strategic move by the National Bank. This decision aligns with efforts to stabilize the economy and manage financial policies effectively.
