The National Bank of Ukraine (NBU) has raised its key interest rate from 16% to 16.5% in response to increasing inflation pressures. This move aims to curb the anticipated acceleration of inflation. As a result of this rate hike, loans are expected to become more expensive, while interest rates on new bank deposits will also see an increase.
Furthermore, the NBU anticipates a contraction of 0.4% in the Ukrainian economy by the end of 2026, a downgrade from its previous forecast of a 1.8% growth.
