The National Bank of Ukraine lowered its benchmark interest rate by 200bps to 8% on April 23rd, while markets had forecast a smaller 75bps. It brings borrowing costs to its lowest since March of 2014 to support the economy during the period of pandemic and quarantine. Policymakers expect the economy to contract by 5.0% in 2020 in the wake of the quarantine imposed to overcome the pandemic and due to the global crisis; and it is projected to resume growth at around 4% in the following years. Meantime, inflation is forecasted to accelerate moderately in the coming months, to reach 6% at the end of 2020. The NBU expects the key policy rate to be reduced further, to 7% in the current year but leaves open the possibility of a greater easing in monetary policy if a fall in consumer demand puts stronger downward pressure on inflation than is currently expected.
Interest Rate in Ukraine averaged 37.88 percent from 1992 until 2020, reaching an all time high of 300 percent in October of 1994 and a record low of 6.50 percent in August of 2013. This page provides the latest reported value for - Ukraine Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Ukraine Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2020. source: National Bank of Ukraine
Interest Rate in Ukraine is expected to be 8.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Ukraine to stand at 7.00 in 12 months time. In the long-term, the Ukraine Interest Rate is projected to trend around 7.00 percent in 2021, according to our econometric models.