The National Bank of Ukraine (NBU) has decided to cut its key policy rate from 22.0% to 20% per annum from September 15, 2023. The announcement was made by NBU Governor Andriy Pyshnyi at a briefing broadcast on YouTube. This is the second cut in the key policy rate since July of this year.

Earlier, the NBU set the key policy rate at 25% and kept it unchanged for over a year. However, given the further slowdown in inflation and the bank's ability to ensure exchange rate stability, it was decided to continue the cycle of rate cuts.

According to Pyshnyi, this cut does not pose a threat to macrofinancial stability, but rather contributes to the economic recovery of Ukraine. This step also preserves the attractiveness of hryvnia savings, providing more favorable conditions for depositors.

"This step will support the economic recovery and will not pose a threat to macrofinancial stability," the NBU Governor said.