The Third Interest Rate Hike in Ukraine Since Midyear
October 29, 2026
A scheduled policy review was conducted today in Ukraine, an economy hit by the double-whammy of brutal and constant bombardment from Russia and the high elevation of energy prices that all countries are feeling. Officials at the National Bank of Ukraine had raised their discount rate twice before by half a percentage point each recently in June and September, so market participants felt that a pause to assess the effect of those moves would be the likeliest decision. Instead, a third 50-basis point increase to 16.5% was ordered. That brings the rate to its highest level since October 2023 and 650 basis points north of the 11-month high 10.0% consumer price inflation reading in September. The statement justifies today’s move by the need to
retain the attractiveness of hryvnia assets, maintain FX market sustainability, keep expectations under control, and to gradually bring inflation back to its 5% target over the policy horizon. The intensification of Russia’s targeted attacks on production facilities and infrastructure in recent months has significantly heightened inflation risks.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: National Bank of Ukraine
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