The National Bank of Ukraine cut its key policy rate by 50 basis points to 15%, effective 30 January 2026, launching an easing cycle as inflationary pressures ease and risks around external financing decline. The decision is intended to bring inflation back to the 5% target over the policy horizon while supporting the economy, with policy set to remain flexible as the risk distribution changes. In December, consumer and core inflation both slowed to 8% year on year, driven mainly by higher harvests, some easing in labour market pressures, and continued stability in the foreign exchange market. The NBU estimates annual consumer price growth declined further in January, although inflation expectations remained relatively high. Inflation is expected to keep declining in the coming months due to the continued effects of stronger 2025 harvests, before energy sector damage and low base effects contribute to a moderate acceleration in the second half of 2026, with the 5% target projected to be reached in mid-2028. The NBU said it will continue to respond flexibly to changes in the balance of risks.
National Bank of Ukraine 2026-01-28
National Bank of Ukraine cuts key policy rate to 15% to begin easing cycle
The National Bank of Ukraine reduced its key policy rate by 50 basis points to 15%, effective 30 January 2026, to address easing inflationary pressures and declining external financing risks. The move aims to achieve a 5% inflation target by mid-2028 while maintaining economic support and policy flexibility.