The National Bank of Ukraine (NBU) projects that the discount rate will decrease more gradually over the next year than expected, and will total 7.5% at the end of 2022.
NBU Governor Kyrylo Shevchenko said this at a briefing on October 21, according to an Ukrinform correspondent.
"The reduction of the discount rate over the next year will be more gradual than projected. It is expected to amount to 7.5% by the end of next year against 6.5% as projected in the previous forecast," Shevchenko said.
He noted that in order to return the inflation rate to the target range of 5%, the discount rate will be kept at the level of 8.5% at least until the third quarter of 2022, but not until the second quarter, as was projected in July.
As Ukrinform reported, the National Bank of Ukraine decided to keep the discount rate at 8.5%.
In September, the NBU raised the discount rate to 8.5%. Prior to that, the NBU raised the discount rate to 8% per annum from July 23. In June, the central bank kept the discount rate at 7.5%. On April 16, the NBU raised the discount rate from 6.5% to 7.5% and from 6% to 6.5% on March 5.
The discount rate at the level of 6% had been in effect in Ukraine since June 2020.