The Board of the National Bank of Ukraine left its key policy rate unchanged at 15%, saying current monetary conditions remain sufficiently tight, demand for hryvnia saving instruments is strong, and risks linked to the war in the Middle East and external financing have eased, while stressing that the war remains the main threat to inflation and economic activity. Headline inflation slowed to 8.2% year on year in May on seasonal food supply factors, while core inflation accelerated to 7.9%, with both above the path in the April 2026 Inflation Report; the National Bank of Ukraine expects inflation to stay near current levels in the coming months, accelerate at the end of the year, and return to a downward path in 2027 toward its 5% target, while noting that unchanged rates should also support lending, which is growing steadily at a rapid pace. After lower-than-expected external aid in January-May, the central bank said Ukraine may receive around USD 13 billion in June under support programs including Extraordinary Revenue Acceleration and the Ukraine Support Loan, and it expects sufficient financing to cover the budget deficit, increase reserves and preserve foreign-exchange market sustainability. It also said lower oil prices amid intensified diplomatic efforts over the Middle East should reduce energy import costs and help curb inflation, though a prolonged conflict there would raise energy prices and weigh on the economy and inflation trends. The National Bank of Ukraine sa
National Bank of Ukraine2026-06-18
National Bank of Ukraine Holds Key Policy Rate at 15%
The National Bank of Ukraine kept its key policy rate unchanged at 15%, saying monetary conditions remain sufficiently tight as headline inflation slowed to 8.2% year on year in May, though core inflation rose to 7.9% and both remained above the path in the April 2026 Inflation Report. It said inflation should stay near current levels in the coming months before accelerating later this year and then easing toward the 5% target in 2027, while expected June external financing of about USD 13 billion should support reserves and foreign exchange stability, and it remains ready to raise rates if underlying price pressures intensify.