This Year’s Fourth Central Bank Rate Hike in Ukraine

September 9, 2021

The National Bank of Ukraine‘s policy interest rate was raised for the fourth time this year. Today’s increase of 50 basis points matches the hikes done in July and March, while one in April was by a full percentage point. Altogether, the rate has been raised from 6.0% at the start of the year to 8.5% now. A released statement notes that inflation of 10.2% is twice the target of 5%, and officials aim to restore the target by next year. Although core inflation seems to have stabilized, inflation expectations are high, and wages are rising rapidly. GDP growth has picked up this quarter more quickly than assumed. Officials intend to end other pandemic support measures by yearend, and more interest rate hikes may become necessary.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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