The National Bank of Ukraine has decided to reduce the discount rate from 15.0% to 14.5% per annum from March 15, 2024. Thus, the NBU continued the cycle of key policy rate cuts that began in July last year. This was stated by head of NBU Andriy Pyshnyi during a briefing.

"The further slowdown in inflation, the continued stable situation in the foreign exchange market, as well as positive developments in obtaining external assistance make it possible to resume the interest rate policy easing cycle earlier," he said.

It is noted that in February, inflation slowed to 4.3% year-on-year, and core inflation to 4.5%.

"Given the further slowdown in inflation and the steady improvement in expectations, the stable situation in the foreign exchange market, as well as the partial reduction of risks associated with obtaining international aid, the NBU Board decided to cut the key policy rate by 0.5 percentage points to 14.5%," the head of NBU said.

The interest rate on three-month certificates of deposit will be cut by 1.5 percentage points to 17.5% starting March 15. The rate on refinancing loans is also being reduced by 1.5 percentage points to 19.5%. The rate on overnight certificates of deposit will continue to be equal to the discount rate.