Weekly Insight -- NBU increases key rate, signals two more hikes
The regulator has raised the key monetary policy rate by 100 bps, to 14.5%. This decision aligns with the upper bound of market expectations—forecasts ranged between a 50bps and a 100bp hike.
The move follows a 50bps increase in December. Additionally, the NBU has updated its macroeconomic forecast, revising its end-2025 CPI expectations to 8.4% YoY, up from a previous forecast of 6.9%, and signalled its preparedness for two further hikes of 50 bps each in March and June.