The National Bank of Ukraine plans to cut the discount rate and the rate on overnight deposit certificates at its next meeting on December 15 to 15% per annum. This was announced by Deputy Chairman of the National Bank Serhiy Nikolaychuk.
"Our forecast predicts that in December the next step will be taken and the rate will be cut by 1 percentage point," he said at a press conference on October 26.
Nikolaychuk noted that the National Bank will change the rates on other financial instruments, such as three-month certificates of deposit and refinancing, accordingly, pointing out that "the regulator has some room for maneuver."
"Unlike the rate on overnight deposit certificates, which is strictly tied to the discount rate, this spread, this margin, can be changed depending on additional tasks of the National Bank," the deputy head added.
According to the regulator's website, the NBU plans to cut the discount rate to 15% by the end of the year and keep it unchanged throughout 2024.
The head of the NBU, Andriy Pyshnyi, also noted that the new monetary policy design, which provides for equal levels of the discount rate and the overnight deposit certificate rate, will be maintained next year. However, further cuts in the discount rate will depend on inflationary dynamics and other risks.
