The National Bank has not changed the discount rate and expects it to be reduced in the IV quarter

The Board of the National Bank decided to keep the discount rate at the level of 15.5%.

This is stated in the regulator message on September 11.

It is noted that this will continue to maintain proper monetary conditions for the stability of the foreign exchange market and bringing inflation up to 5%.

“The nominal yield of hryvnia instruments has not changed over the last months, and in real dimension has increased somewhat due to slowing inflation and improving inflation expectations,” said NBU Chairman Andriy Pishny.

According to him, as a result of the volume of population investments in term deposits and government bonds in the hryvnia increased, and the net demand for currency from the population was restrained.

It is also noted that the July macroeconomic forecast of the NBU envisages the beginning of the cycle of reduction of the discount rate in the IV quarter of 2025.

Although inflation is fixed to the reduction trajectory, pro -inflation risks persist.

“The National Bank will closely monitor the development of the situation. In the event of implementation or strengthening of the NBU, the NBU will be ready to delay the reduction of the discount rate, and if necessary – to take additional measures,” Pishny stressed.

Read also: The NBU is trying to “extinguish inflation.” What will happen to the course?

Recall:

In March, the National Bank raised the discount rate by another 1 pp. – up to 15.5% per annum, and in April, June and July kept its at this level.