The Board of the National Bank of Ukraine has decided to maintain the discount rate at 15.5%. This decision will contribute to the stabilization of the currency market, control over inflation expectations, and a gradual reduction of inflation to the target of 5%.
This is reported by Business • Media
Inflation Forecast and Economic Expectations
According to new forecasts, the National Bank has downgraded its expectations for the consumer price index in 2025 – from 8.4% to 8.7%. At the same time, the regulator predicts that the growth of prices in annual terms for most goods and services will slow down in the summer. An increase in harvests is expected to contribute to a decrease in food inflation starting from the third quarter of 2025 and its stabilization at a low level in the future.
Fundamental inflationary pressure will gradually diminish due to the monetary policy measures of the NBU, improvements in the electricity supply situation, and reduced pressure from the labor market. Additionally, a decrease in oil prices due to global trade confrontations will be another contributing factor.
“As a result, inflation will decrease to 8.7% by the end of 2025, and to the target of 5% in 2026,” the regulator reported.